Economics 02MC1 Demand & Supply (1) - Multiple Choice (2009-2016)

1. 2009.MC.Q5
The demand for _________ can be regarded as a derived demand of _________.
A.

beef leather

B.
C.

printing paper magazines

pop songs MP3 players

D.

high definition digital receivers () TV sets

2. 2009.MC.Q6
An increase in the price of flour will lead to a decrease in
A. The demand for flour.
B.
C.

The supply of flour.

The demand for bread.

D.

The supply of bread.

3. 2009.MC.Q7
The diagram below shows the supply and demand curves of mainland Chinas milk powder products in
Hong Kong. The original equilibrium point is at E.

Some of these milk powder products were found to contain the harmful substance, melamine ()
and some mainland milk powder producers left the industry. One possible new equilibrium point of the
above diagram is at _________.
A.

E1

B.
C.

E2
E3

D.

E4

4. 2010.MC.Q6
Suppose both the price and quantity transacted of imported rice decrease.
This is likely to be caused by
A.
B.
C.
D.

An increase in the transportation cost resulting from a higher fuel price.

A change in taste from consuming rice to consuming noodles.
A bad harvest of rice.
An increase in the income of households given that rice is a normal good.

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Economics 02MC1 Demand & Supply (1) - Multiple Choice (2009-2016)

5. 2010.MC.Q8
The diagram below shows the supply and demand curves of swine flu vaccine in Hong Kong. The original
equilibrium point is at E.

If the number of the swine flu vaccine manufacturers increases and the risk of being infected by swine flu
increases, one possible new equilibrium point of the above diagram is at _________.
A.

E1

B.
C.

E2
E3

D.

E4

6. 2011.MC.Q5
Which of the following is an example of competitive supply?
A. Compact discs and compact disc players
B. Residential buildings and commercial buildings
C. Textbooks and printing paper
D. Bread and butter
7. 2011.MC.Q6
The diagram below shows the supply and demand curves of imported Japanese automobiles in Hong Kong.
The original equilibrium point is at E.

Suppose it is rumoured that there are technical problems with Japanese automobiles that may cause traffic
accidents. At the same time, the Japanese Yen appreciates against the Hong Kong dollar.
The new equilibrium point will be at _________.
A. E1
B. E2
C. E3
D.

E4

HKDSE Economics Past Examination Paper

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Economics 02MC1 Demand & Supply (1) - Multiple Choice (2009-2016)

8. 2011.MC.Q7
Suppose in Hong Kong there is an excess supply of Fillpina domestic helpers at the minimum wage (w) set
by the government.
Also suppose that recently Hong Kong employers have to purchase an additional insurance policy for newly
hired Filipina domestic helpers.
Which of the following diagrams correctly reflects the above situation in the Filipina domestic helpers
market in Hong Kong?

9. 2011.MC.Q9
The government has imposed an environmental levy on plastic shopping bags but not on non-woven reusable
bags ().
Suppose there was also an increase in the number of producers of non-woven reusable bags.
As a result, the total sales revenue of non-woven reusable bags ________.
A.

Would increase

B.
C.

Would decrease
Would remain unchanged

D.

Might increase, remain unchanged or decrease

HKDSE Economics Past Examination Paper

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Economics 02MC1 Demand & Supply (1) - Multiple Choice (2009-2016)

10. SP.MC.Q15
The following diagram shows the hotel accommodation market in London.

Point E is the original

equilibrium point.

Suppose there is a bomb attack in a tube (subway) station and there is a rise in the operating cost of hotels in
London. The new equilibrium point in the diagram would be __________.
A. W
B. X
C. Y
D. Z
11. SP.MC.Q16
In order to reduce the number of plastic bags used, the government plans to impose a charge on consumers
according to the number of plastic bags that consumers obtain from shops.
Which of the following concepts can be used to explain the above policy?
A. the law of demand
B. the principle of comparative advantage
C. diseconomies of scale
D. the law of diminishing marginal returns

HKDSE Economics Past Examination Paper

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Economics 02MC1 Demand & Supply (1) - Multiple Choice (2009-2016)

12. PP.MC.Q10
In the following diagram, E0 is the initial equilibrium of the market for printed books in Hong Kong.

Suppose there is a trend to read electronic books and there is a rise in the price of printing paper. The new
equilibrium point in the diagram will be __________.
A. Ea
B. Eb
C. Ec
D. Ed
13. 2012.MC.Q13
A train accident seriously affects the confidence of travelers using a high-speed electric train service. At the
same time, the airlines are facing the problem of rising fuel prices. Which of the following diagrams could
represent a result of the above events?

HKDSE Economics Past Examination Paper

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Economics 02MC1 Demand & Supply (1) - Multiple Choice (2009-2016)

14. 2012.MC.Q15
The following is the demand-supply diagram of a property market. E0 is the original equilibrium point.

If the government increases the stamp duties levied on property buyers and tightens the controls on dumping
of construction waste, the new equilibrium point in the property market will be __________.
A.
B.

E1
E2

C.
D.

E3
E4

15. 2013.MC.Q10
Which of the following is assumed to be constant when the market demand curve of a good is derived?
(1) The income of the consumers
(2) The price of the good
(3)
(4)
A.
B.
C.
D.

Prices of related goods

Preference of the consumers
(1) and (3) only
(2) and (3) only
(1), (2) and (4) only
(1), (3) and (4) only

HKDSE Economics Past Examination Paper

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Economics 02MC1 Demand & Supply (1) - Multiple Choice (2009-2016)

16. 2013.MC.Q11
Refer to the following demand-supply diagram showing the market of luxury watches in Hong Kong. The
initial equilibrium point is E0.

Suppose the rental of shopping premises in Hong Kong rises sharply and the economy in the mainland
experiences a recession. The new equilibrium point will be ________.
A. E1
B. E2
C. E3
D. E4
17. 2013.MC.Q12
A drop in the price for good X will lead to a drop in the price of good Y if
(1) good X and good Y are substitutes.
(2) good X and good Y are complements.
(3) good X and good Y are in competitive supply.
(4) good X and good Y are in joint supply.
A. (1) and (3) only
B. (1) and (4) only
C. (2) and (3) only
D. (2) and (4) only
18. 2014.MC.Q12
In which of the following pairs does the demand for the first good create a derived demand for the second one?
A. Aviation service and pilots
B. West Rail Ling train and Light Rail train service
C. Blu-ray discs and Blu-ray disc players
D. Hong Kong Disneyland and Ocean Park Hong Kong

HKDSE Economics Past Examination Paper

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Economics 02MC1 Demand & Supply (1) - Multiple Choice (2009-2016)

19. 2014.MC.Q14
Suppose the equilibrium point of the cosmetic surgery market in Hong Kong is originally at E0. If people
become open-minded to cosmetic surgery while more regulations are imposed on the cosmetic surgery
industry, the new equilibrium point will be at ___________.

A.

E1

B.
C.
D.

E2
E3
E4

20. 2015.MC.Q14
Holding other factors constant, a rise in the price of Good X will lead to a fall in the total revenue of Good Y
if
A.
B.
C.
D.

Good X and Good Y are complements.

Good X and Good Y are substitutes.
Good X and Good Y are joint supply.
Good X and Good Y are competitive supply.

21. 2015.MC.Q15
SS is the supply curve for smartphones. Which of the following reasons can best explain the change of the
equilibrium position in the smartphone market from A to B?

A. The retailers offer more free gifts for buying smartphones.

B. The size of a tablet computer with a phone function is reduced.
C. There are more smartphone producers in the market.
D. The major network service providers increase the service charge at the same price.
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Economics 02MC1 Demand & Supply (1) - Multiple Choice (2009-2016)

22. 2016.MC.Q13
Which of the following situations would lead to an increase in the demand for private housing?
A. The price of private housing decreases.
B. The supply of public housing increases.
C. People expect the interest rate for mortgage loans to increase later.
D. People expect the price of private housing to increase later.
23. 2016.MC.Q14
The demand for _________ can be regarded as a derived demand for _________.
A. coffee beans coffee
B. selfie sticks digital cameras
C. chicken wings chicken legs
D. newspapers printing paper
24. 2016.MC.Q16
The diagram below shows the supply and demand curves of taxi services in Hong Kong. The original
equilibrium is at E.

New apps for smartphone such as Uber have been developed that enable some private car owners to provide
the general public with personalised point-to-point transport service. At the same time, the fuel price has
decreased significantly. The new equilibrium point will be at ___________.
A. E1
B. E2
C. E3
D. E4
25. 2016.MC.Q17
The demand for construction workers in Hong Kong will increase if
A.
B.
C.
D.

the legal procedures for urban re-development are simplified.

wage rates of construction workers decrease.
the government provides more allowances for training programmes for the construction industry.
there are fewer job opportunities in the construction industry in Macau.

HKDSE Economics Past Examination Paper

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