This assignment solution for an Introduction to Microeconomics course (BUS102) addresses three key questions. The first question explores the concept of the Production Possibility Frontier (PPF), including its assumptions, properties, and implications of shifts in demand for two goods (bicycles and cars). The second question delves into market dynamics, analyzing total revenue changes with price fluctuations, determining market equilibrium, and calculating consumer and producer surplus under different scenarios, including government restrictions. The third question examines the relationship between online and in-store movie rentals, considering their substitutive nature, the impact on market equilibrium, and the factors influencing price elasticity of demand, specifically for Optus' online movie rentals. The solution provides detailed explanations, calculations, and graphical representations to illustrate the economic concepts.