Demand Supply and Price Price Elasticity03-2019

D&S Price Elasticity Market Intervention CE 2003 -2010 DSE 2012-2019
C1/2003*
Ans.
C10/2003
10b.
Ans.
C11/2003 *
11d
Ans.
C9/2004
9c.
Ans.
C10/2004*
10a.
Ans.
C1/2005
C9/2005 *
9a,bi.
Ans.
C1/2006
Ans.
C9/2006*
*9a.
Ans.
C8a/2007
Answer
C9c/ 2007
Answer
Markers’
report
C1 / 2008
Answer
Markers’
report
C9b/ 2009
Answer
C11ci/2009*
Answer
Markers’
report
DSE 12c/2012
(c) The government has decided to re-introduce the Home Ownership Scheme in which eligible
citizens can purchase a living unit under the scheme at a great discount.
(i) With the aid of a demand-supply diagram, explain how the re-introduction of the Home
Ownership Scheme would cool down the private housing market. (5 marks)
(ii) WITHOUT the aid of a diagram, explain how the mortgage interest rate could be adjusted to
cool down the private housing market. (3 marks)
Answer
Markers’
report
DSE 9/2013
Ans.
DSE 9/2013
9
Ans.
DSE 10c/2013
10c
DSE 9/2014
DSE 10 e/2014
10
DSE 4/2015
4
DSE 11c d/2015

11c d
DSE 9/2016
9
DSE 10c/ 2016

10c
buyers’ burden < producers’ burden (1)
DSE 13 bii/ 2016

DSE 5a /2018
5a During peak flu seasons, there is not enough medical staff in public hospitals in Hong Kong.
(a) An economist stated, ‘Even if the government sharply increases the wage rates of the medical
staff, it is still difficult to relieve the problem.’ Justify his statement using the concept of
elasticity of supply / demand. (3 marks)
(b) In order to relieve the pressure of the medical staff, the government plans to recruit retired
medical staff to re-join the public hospitals. Explain how the measure would affect the
unemployment rate in Hong Kong. (4 marks)
Ans. The supply of the medical staff may be inelastic because medical staff requires special training
and qualification. When government increases the wage rates, the percentage increase in quantity
supplied of the medical staff is smaller than the percentage increase in the wage rate. (3)
DSE 10d & e/ 2018

10 d Foreign domestic helpers are paid with a minimum wage at HK$4 410 per month for a two-year
contractual period in Hong Kong.
(a) Explain why foreign domestic helpers are paid by a monthly salary instead of a piece rate.
(2 marks)
(b) Who, the employers or the foreign domestic helpers, will suffer a loss if there is an
unexpected inflation in the contractual period? Explain. (2 marks)
(c) Suppose the minimum wage in the market of foreign domestic helpers in Hong Kong is
effective. With the aid of Figure 2, explain how it may result in economic inefficiency.
(4 marks)
It is reported that the Mainland market is about to open its doors to maids from the Philippines,
offering them a salary several times higher than the minimum wage for foreign domestic
helpers in Hong Kong.
(d) Some employers in Hong Kong claimed, ‘Even if we offer higher wages to foreign domestic
helpers, there will still be insufficient foreign domestic helpers in Hong Kong after the
opening of the Mainland market to maids from the Philippines.’ With the aid of Figure 2,
explain why the above claim may be correct. (6 marks)
(e) Other than insufficient foreign domestic helpers, suggest ONE phenomenon that may be
observed in the market of foreign domestic helpers in Hong Kong after the opening of the
Mainland market to maids from the Philippines. (1 mark)
Ans d.
Verbal elaboration:
Filipino maids working in the Mainland and Filipino domestic helpers in Hong Kong are in
competitive supply.
The supply of foreign domestic helpers in Hong Kong will sharply decrease and even at a higher
wage rate there would be a shortage. (3)
Illustrate in Figure 2:
–Leftward shift of supply curve (1)
–Correct position of shortage at the higher wage rate (2)
(e)
Possible phenomena:
–Employers may try to recruit domestic helpers from other countries to work in Hong Kong.
–The minimum wage may be raised / abolished by the government.
Remark: More people may quit their jobs and take care of their children / elderly full time.
@1 max. 1
Markers’
report
DSE 13c/2018
13c The source below shows Hong Kong’s population projection.
(c) Susan is a local S6 graduate and is considering enrolling a programme in either primary
education or nursing in Hong Kong. If future income is her major concern, which
programme would you recommend to her? Explain your choice with reference to the above
source. (4 marks)
Ans Nursing, because (1)
the demand for medical service would rise. And the demand for nurse is the derived demand for
the medical service. The future income of being a nurse is expected to be higher/ rising due to
ageing population. (3)
Markers’
report
DSE 11b/2019
11b The Guangzhou-Shenzhen-Hong Kong Express Rail Link (High Speed Rail) was launched in
September 2018.
(a) Explain the effect of the launch of High Speed Rail on labour mobility of Hong Kong.
(3 marks)
(b) During non-holidays, there are a lot of empty seats on some trains of the High Speed Rail.
With the aid of Figure 1, explain why the above situation may be inefficient. (4
marks)
Answer
Marker
report

Demand Supply and Price Price Elasticity03-2019

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Demand Supply and Price Price Elasticity03-2019

Uploaded by

Copyright:

Available Formats

D&S Price Elasticity Market Intervention CE 2003 -2010 DSE 2012-2019

DSE 11c d/2015

DSE 10c/ 2016

buyers’ burden < producers’ burden (1)

DSE 13 bii/ 2016

DSE 10d & e/ 2018

You might also like