⋆ ˆ ⋆
ECS2601: INTERMEDIATE MICROECONOMICS
May/June Examination 2026 — Comprehensive Revision Guide
Based on May/June 2025 & May/June 2024 Past Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Economic & Management Sciences — UNISA
Exam Revision Guide
ECS2601
Module Code:
Intermediate Microeconomics
Module Name:
May/June 2023 - May/June 2025
Papers Covered:
May/June 2026
Target Exam:
100 marks (2 hours)
Total Marks:
Section A (MCQ) + Section B (Long Q)
Format:
Use this guide to revise thoroughly. Focus on understanding concepts, not memorisa-
tion. Work through every question before reading the answer.
Exam Revision Notes | ECS2601 | May/June 2026
,ECS2601 | Exam Revision Intermediate Microeconomics
How to Use This Revision Guide
This guide covers authentic exam-style questions drawn from the ECS2601 May/June
2025 and May/June 2024 past papers, together with comprehensive model answers. Both pa-
pers follow the same structure:
• Section A – Multiple-choice questions (40 marks)
• Section B – Structured/essay questions (60 marks)
The examination tests six core areas: Elasticity; Consumer Behaviour; Production; Costs;
Competitive Markets and Market Structures; Externalities and Market Failure.
Work through each question independently before reading the answer. Pay close attention to
the Exam Tip boxes – they highlight the phrases and calculations examiners reward.
Page 2 of 25
,ECS2601 | Exam Revision Intermediate Microeconomics
PAPER 1 — MAY/JUNE 2025 EXAMINATION
ECS2601: Intermediate Microeconomics | 100 Marks | 2 Hours
Section A: Multiple-Choice Questions
40 marks
Exam Tip
Each MCQ carries 2 marks. There is no negative marking. Always eliminate obviously
wrong options first, then reason through the remaining choices. Show rough workings in
the margin for calculation questions.
Question 1
2 marks
Question: The price elasticity of demand for a good is −2.5. If price increases by 4%,
the quantity demanded will:
A. Increase by 10%
B. Decrease by 10%
C. Increase by 6.25%
D. Decrease by 6.25%
Answer: Correct answer: B
%∆Q
Using the definition Ed = :
%∆P
%∆Q = Ed × %∆P = (−2.5) × (+4%) = −10%
Quantity demanded falls by 10%. The negative sign indicates an inverse relationship
between price and quantity demanded (Law of Demand).
Question 2
2 marks
Page 3 of 25
, ECS2601 | Exam Revision Intermediate Microeconomics
Question: If the cross-price elasticity of demand between good X and good Y is positive,
the two goods are:
A. Complements
B. Substitutes
C. Inferior goods
D. Normal goods
Answer: Correct answer: B
%∆QX
Cross-price elasticity EXY =
%∆PY
• EXY > 0 — Substitutes (rise in price of Y increases demand for X)
• EXY < 0 — Complements (rise in price of Y decreases demand for X)
Example: Butter and margarine are substitutes; if the price of butter rises, demand for
margarine increases.
Question 3
2 marks
Question: A consumer maximises utility when, for goods X and Y:
A. M UX = M UY
M UX M UY
B. =
PX PY
C. M UX · PX = M UY · PY
D. M UX + M UY is maximised
Answer: Correct answer: B
The utility-maximising condition (equi-marginal principle) states that a rational
consumer allocates spending so that the last rand spent on each good yields the same
marginal utility:
M UX M UY
=
PX PY
This is equivalent to the tangency condition where the indifference curve is tangent to
PX
the budget line: M RSXY = .
PY
Page 4 of 25
ECS2601: INTERMEDIATE MICROECONOMICS
May/June Examination 2026 — Comprehensive Revision Guide
Based on May/June 2025 & May/June 2024 Past Papers
⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆ ⋄ ⋆
Economic & Management Sciences — UNISA
Exam Revision Guide
ECS2601
Module Code:
Intermediate Microeconomics
Module Name:
May/June 2023 - May/June 2025
Papers Covered:
May/June 2026
Target Exam:
100 marks (2 hours)
Total Marks:
Section A (MCQ) + Section B (Long Q)
Format:
Use this guide to revise thoroughly. Focus on understanding concepts, not memorisa-
tion. Work through every question before reading the answer.
Exam Revision Notes | ECS2601 | May/June 2026
,ECS2601 | Exam Revision Intermediate Microeconomics
How to Use This Revision Guide
This guide covers authentic exam-style questions drawn from the ECS2601 May/June
2025 and May/June 2024 past papers, together with comprehensive model answers. Both pa-
pers follow the same structure:
• Section A – Multiple-choice questions (40 marks)
• Section B – Structured/essay questions (60 marks)
The examination tests six core areas: Elasticity; Consumer Behaviour; Production; Costs;
Competitive Markets and Market Structures; Externalities and Market Failure.
Work through each question independently before reading the answer. Pay close attention to
the Exam Tip boxes – they highlight the phrases and calculations examiners reward.
Page 2 of 25
,ECS2601 | Exam Revision Intermediate Microeconomics
PAPER 1 — MAY/JUNE 2025 EXAMINATION
ECS2601: Intermediate Microeconomics | 100 Marks | 2 Hours
Section A: Multiple-Choice Questions
40 marks
Exam Tip
Each MCQ carries 2 marks. There is no negative marking. Always eliminate obviously
wrong options first, then reason through the remaining choices. Show rough workings in
the margin for calculation questions.
Question 1
2 marks
Question: The price elasticity of demand for a good is −2.5. If price increases by 4%,
the quantity demanded will:
A. Increase by 10%
B. Decrease by 10%
C. Increase by 6.25%
D. Decrease by 6.25%
Answer: Correct answer: B
%∆Q
Using the definition Ed = :
%∆P
%∆Q = Ed × %∆P = (−2.5) × (+4%) = −10%
Quantity demanded falls by 10%. The negative sign indicates an inverse relationship
between price and quantity demanded (Law of Demand).
Question 2
2 marks
Page 3 of 25
, ECS2601 | Exam Revision Intermediate Microeconomics
Question: If the cross-price elasticity of demand between good X and good Y is positive,
the two goods are:
A. Complements
B. Substitutes
C. Inferior goods
D. Normal goods
Answer: Correct answer: B
%∆QX
Cross-price elasticity EXY =
%∆PY
• EXY > 0 — Substitutes (rise in price of Y increases demand for X)
• EXY < 0 — Complements (rise in price of Y decreases demand for X)
Example: Butter and margarine are substitutes; if the price of butter rises, demand for
margarine increases.
Question 3
2 marks
Question: A consumer maximises utility when, for goods X and Y:
A. M UX = M UY
M UX M UY
B. =
PX PY
C. M UX · PX = M UY · PY
D. M UX + M UY is maximised
Answer: Correct answer: B
The utility-maximising condition (equi-marginal principle) states that a rational
consumer allocates spending so that the last rand spent on each good yields the same
marginal utility:
M UX M UY
=
PX PY
This is equivalent to the tangency condition where the indifference curve is tangent to
PX
the budget line: M RSXY = .
PY
Page 4 of 25
