Hkcee 2010 Econ Paper 2 Q2 [best]
HKCEE 2010 Economics Paper 2 Question 2
The correct answer for is C . Question Summary
Step 3 – Compute surplus changes (refer to standard supply-demand diagram).
- Description: impose a tax equal to MEC per unit so that MPC + tax = MSC; firms internalize external cost; market moves to Q_social.
- Advantages: theoretically efficient; price signal; revenue-raising.
- Drawbacks: requires reliable measure of MEC; administrative and monitoring costs; risk of political resistance; if poorly set, causes under- or over-correction.
The HKCEE 2010 Paper 2 Q2 is directly relevant to HKDSE Economics Topic 4 (Market Intervention) and Topic 5 (Efficiency). Modern analogs include: hkcee 2010 econ paper 2 q2
you could have earned by leasing it to someone else. When the market rent increases, the value of that "forgone" option rises, thus increasing your opportunity cost. Incorrect Option (A): HKCEE 2010 Economics Paper 2 Question 2 The
A second part of Q2 often introduced a change in the market for a substitute. For example: “Suppose the government reduces the fare of the MTR. At the same time, a new bus route with lower fares is introduced. Explain the combined effect on the total revenue of the MTR company.” Description: impose a tax equal to MEC per
For further practice, you can find compiled past paper answers from 1990-2018 at A1 Education or specialized topic guides on AfterSchool . HKCEE Economics Answers 1990-2008 | PDF - Scribd
- Bad weather reduces supply from mainland China → supply of rice in Hong Kong decreases.
- Supply curve shifts leftward from S₁ to S₂.
- Demand unchanged.
- New equilibrium: higher price (P₂ > P₁) and lower quantity (Q₂ < Q₁).