S4 ECONOMICS

Demand and Supply Intensive Assignment 1

Name: _____________________ Score: ___________________

Class: ______________ ( ) Date: 5 Mar 2021

1. The government has made face masks compulsory on public outdoor areas to fight against
the outbreak of local coronavirus infections. With the aid of a diagram, explain how the
above policy would affect the total expenditure on face masks storage cases. (6 marks)

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2. According to the Budget 2021-2022, the government will spend $1 billion to subsidise
drainage repair works in over 3 000 old buildings. With the aid of a diagram, explain how
the subsidization would affect the total wage earnings of workers in drainage repairing
industry. (6 marks)

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Bonus Question

3. Due to the outbreak of COVID-19 pandemic, the number of passengers using public
transport has decreased. Assume that there was no change in fare of public transport and the
supply of public transport services remains normal during the pandemic. With the aid of
diagram, explain how the outbreak of COVID-19 pandemic would affect the total
expenditure on public transport. (6 marks)