In previous years (such as 2004), Question 2 also focused on Opportunity Cost
A price ceiling is a maximum legal price set by government. hkcee 2010 econ paper 2 q2
Compute PS as area under price $80 down to supply curve, from Q=0 to Q=10 (quantity sold). That’s a trapezoid? Actually simpler: PS = [price × quantity sold] – area under supply curve from 0 to 10. In previous years (such as 2004), Question 2
Therefore, the correct combination is (1) and (3). In previous years (such as 2004)
A. (1) only B. (1) and (2) only C. (1) and (3) only D. (2) and (3) only