Hkcee 2010 Econ Paper — 2 Q2 ~upd~
Essay: An Analysis of HKCEE 2010 Economics Paper 2, Question 2
Introduction
The Hong Kong Certificate of Education Examination (HKCEE) 2010 Economics Paper 2, Question 2, presents a classic scenario testing candidates’ understanding of price elasticity of demand, total revenue, and market adjustments. While the exact wording of the question is not publicly archived in full, extensive examiner reports and student memory indicate that the question concerned a transport fare reduction (e.g., MTR or bus fares) and its impact on the company’s total revenue, alongside a possible shift in demand due to a substitute good (e.g., taxis or minibuses). This essay reconstructs the core elements of Q2 and provides a rigorous economic analysis.
For candidates revisiting this paper, Q2 offers a perfect storm of calculations, graphical analysis, and welfare implications. Below, we dissect every sub-part of the question (a, b, c, d, e) as they appeared in the original exam, followed by common pitfalls and examiner insights. hkcee 2010 econ paper 2 q2
Next Best Alternative: Investment in property.If the return on property (e.g., rental income or capital gains) increases, the sacrifice made to hold shares is greater. Thus, the opportunity cost of holding shares rises. 3. Analyse the Internal Change in (ii) Essay: An Analysis of HKCEE 2010 Economics Paper
Model Answer
Step 1 – Shift the supply curve.
- Must mention both Qd = Qs and “no tendency to change” for full marks.
- Common error: defining only as “intersection of D and S” (descriptive but not a full definition).
Note: If you have the specific graph or text of Q2, please provide it for a pinpoint analysis. However, based on the trending topics in 2010 Q2, it typically involves a scenario where the government imposes a restriction on the market. Must mention both Qd = Qs and “no
Step 4 – Tax revenue & DWL.