Hkcee 2010 Econ Paper 2 Q2 May 2026

This question typically deals with the concept of demand and supply, price elasticity, and market intervention (e.g., tax or subsidy).

• HKDSE Economics Paper 1 & 2 (Section B) often repeats similar market intervention questions with maximum price, minimum price, and specific tax.
• IB Economics Paper 3 (HL) requires exact calculation of DWL, tax revenue, and consumer/producer surplus.

1. Clear and concise definitions: A good candidate would have clearly defined key terms related to the question, showcasing their understanding of economic concepts.
2. Relevant examples: The answer would have included relevant examples or diagrams to illustrate the concepts, making the response more engaging and showing a deeper understanding of the subject matter.
3. Well-structured arguments: A well-structured answer would have presented logical and coherent arguments, using evidence to support claims and demonstrate a clear line of reasoning.
4. Application of economic concepts: The candidate would have successfully applied economic concepts to the scenario presented in the question, demonstrating their ability to think critically and analytically.

2. Diagram explanation:

The Question Context (Reconstructed from Memory & Standard Patterns)

Note: Since the exact HKCEE 2010 Paper 2 Q2 is copyrighted, we reconstruct it based on common examiner reports and typical data. The core parameters are as follows: hkcee 2010 econ paper 2 q2

• Price: Lower.
• Quantity Transacted: Lower (determined by Supply).
• Total Revenue: Lower.
• Consumer Surplus: Ambiguous (depends on elasticity), but usually lower if the shortage is severe.

8. Conclusion / Recommendation (concise):

Identify THREE rewards that can be gained by the factors of production used by the fashion chain. This question typically deals with the concept of

• A) Revenue decreases, Consumer Surplus increases.
• B) Revenue decreases, Consumer Surplus decreases.
• C) Revenue increases, Total Welfare decreases.
• Students would often get one half of the answer right and the other wrong.