The HKCEE Economics examination, though replaced by the HKDSE, remains a goldmine of rigorous microeconomic problems. Among the most instructive is 2010 ECON Paper 2 Question 2. This question is a classic case study of government market intervention—specifically a price floor (minimum price) in a hypothetical agricultural market. It tests students on demand and supply analysis, elasticity, consumer surplus, producer surplus, and deadweight loss.
Deadweight loss: DWL = loss in total surplus = (original total surplus 640) – (new CS+PS = 100+450=550) = 90. hkcee 2010 econ paper 2 q2
Example Summary: If Q2 presented a price ceiling: A Complete Breakdown of HKCEE 2010 Economics Paper
The HKCEE 2010 Paper was noted for its high difficulty. Q2 was difficult because: It tests students on demand and supply analysis,
(A precise answer without exact diagram coordinates):
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.