Hkcee 2010 Econ Paper 2 Q2 !full! -

HKCEE 2010 Economics Paper 2 — Question 2: Summary, Analysis, and Model Answer

Context (assumption)

I assume you want a concise, well-structured paper analyzing Question 2 from the Hong Kong Certificate of Education Examination (HKCEE) 2010 Economics Paper 2 — covering the question's content, economic concepts tested, step-by-step answers, diagrammatic analysis, evaluation, and sample model answers.

• Is it a shortage (excess demand)?
• If so, quantity traded = Supply.
• Is it a surplus (excess supply)?
• If so, quantity traded = Demand (assuming no government purchase).

Question 2: Externalities

He then looked at his textbook. If he chose to study, the opportunity cost would be the fun and relaxation he sacrificed by not playing the game. hkcee 2010 econ paper 2 q2

Now equate with demand (Qd: at P=8, Qd=60; at P=6, Qd=80). Demand schedule: P = 10 – 0.05Q? Check: Q=80, P=6 yes; Q=60, P=8 yes. So demand: P=10 – 0.05Q. New supply: P=4 + 0.05Q? Let's derive: old supply P=2+0.05Q (since at Q=80, P=6). Then new supply P= (2+0.05Q)+2 = 4+0.05Q. HKCEE 2010 Economics Paper 2 — Question 2:

Based on typical 2010 exam structures found on platforms like Scribd and Course Hero: Is it a shortage (excess demand)

• At ceiling price P_c < P₁, quantity demanded (Qd) > quantity supplied (Qs).
• Shortage = Qd – Qs.
• Non-price rationing emerges (queuing, black markets, favoritism).