This microeconomics assignment explores core economic concepts through a series of questions and answers. The solution analyzes the effects of income changes on the demand for CFL tickets (normal goods) and the impact of price changes on substitute goods (TSN and RDS). It also examines the relationship between the number of diamonds purchased and consumer income, identifying the dependent and independent variables and their correlation. Furthermore, the assignment delves into the concept of price elasticity of demand, comparing short-run and long-run scenarios for electricity. Finally, the solution addresses cost structures and profit maximization for competitive firms, analyzing scenarios where firms earn supernormal profits and the implications of cost and price changes in the short and long run, including shutdown decisions. The assignment incorporates graphical representations to illustrate economic principles and includes a reference list of relevant sources.