1968-03-24 — Page 10

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日六廿月二年申戊壓望

英文中學會考試題預習專欄

經濟及公共事務科 (十一)·劉奇敏,

Economic & Public Affairs

Lecture No. 21

WAH KIU YAT PO

#

Referring to the graph below, you will not les chap the original, demand is represented by the curve so that at quantity Q2 the equilibrium price is but when demand increases (a new demand curve D25 io now drawn) supply cannot be increased suddenly, so the price is raised to P3, later when supply is able to adjust itself to met the new change in deward, the ice falls to F2 which nevertheless is higher than the original pries På, and the quantity supplied is now 02, thus illustrating the fourth law of suppl

and demand.

By K.M. Lau, J.

Answers to questions in. Exercise No. IV111

Solution: (1) Explain the five laws of supply and

demand. Wherever possible, illustra te

Four and WIJ".

期

1四廿月三年八六九一愿公年七十 东國民中

Exercise No. XX

1. What is the e agnomic term for:

W & AR

(#)) a change in the quantity offered for sale in

"esponse to a small change in price?

(b) the amount of a commodity that is bought over

• acale of prices?

(c) The amount of money that is short of in a

budgetary statement?

ร

(d) change in the demand for one article caused

by a change in the demand for another article? (e) a store of value?

2. Study the following graph which shows a demand curve

and answer the questions on itı

Otherwise known as the law of demand, the first law of supply and demand states that at a higher price a lesser quantity of a commodity is bought than at a lower price. If this làw is illustrated graphically, the demand curve will therefore slope downwards, ao shown below:

PRICE

PRICE

Q

QUANTITY

DZ

The effect of an increase in demand (4th Law of Supply & Demand)

The fifth law of supply and demand states that if the supply of a commodity is increased the price will drop and the quantity muzplied ia increased, as illustrated belove

QUANTITI

Illustrating lat law of Sumle & Demand

The tendency of mat supɔliërs is that when the price in high a greater quantity of the commodity is put out for sale, and at a lower price, a lessar quantity is put out for sale. This is the second law of supply and demand. The graph below shows a typical supply curve, which is plotted in gestrdance with this law.

PRICE

P2

pl

D

D

PRICE

B

تم

pl

7%

C

B

0

QUANTITY

(a) is the demand curve drawn contrary to the lar

of demand?

(b) Which part of the curve represents slastic

demand?

(o) Which part of the curve shows that demand is

the least elastic?

(d) at price, P3 what quantity is demanded? (e) if from point & the demand curve slopes

upwards, what does it show?

PRICE

QUANTITI

11lustrating 2nd law of Supply & Demang

The third. Law of supply and demand states that

Mediteremation of the demand curve, and the supply

ourve gives the equilibrium price of the commodity;

quilibrium price in the price of the commodity hich the buyer is willing to pay for a given quantity which the supplier is willing to sell.

QUANTITY

3rd Law of Sunply & Demand

The

ffect

(5th Law of Suor väg Demand)

お

3. Write "true" ör Rfalset against each statement:

(a) The proposed underground railway system is to

made up of six separate lines, joining both Hongkong Island and Kowloon peninsula, CA

(b) Educational Television is found uninitable fo Hong Kong because we do not have the right talent to present Ezi.

(c) If production costs are reduced the supply of

a commodity can be increased, ne

(d) The supply of land bas abaya waan sospet£tive, The Trade Development Comell is soền to be absorbed by the Hong Kong Productivity Cowbell/ and Centre.

4. Kach statement contains a missing word car phrase,

What 12 ity.

SURARIES

The original supply is st. 9494. When quantity. Ql is offered for sale, the equilibrium pics is 22. but when supply is increased (as represented by a new supply curve 8252) the price drops to P" and the now quantity supplied is 4a showing an increase the quantity suppliedz,

fonɛ (2) What do you understand by interrelated

demand? Inte how many kinda ban related demátu fali? Giva silmpl..

VG PUBLIC

"When, the deannd for two dissimilar “commodities

is linked together, so thất an, increase in the demant for one will cause ausisilar increase or a drop in the other commodity, it 15. known as interrelated/ damn rack.

inter-related demand can fall into four different kinda) joint demand and

itive demand, derived demand

Demand ie', üs for one cominodi derman for anni

other. Taks, but risa in the demi 'demand for anothe

-Derived twin demand for ond opin demand for another, records are samp demand because, 'there will be sźdz

records,

competitive if the demand.

In response to a rise in the

Competitive d'amine

aubatitutes for sach, ine for instands. A

cause a drop in the

tsen “a change in the “ xité produces a change in the Record-players and gramophona

iles that have derived Las of record-players rises

and for gramophone

(a) The

Ordinance empowers a policeman to

árrest without warrant any person whom he may reasonably suspect of being guilty of may offence.

(b) & citizen can-arrest without warrant anyone

whom be my see being chased by s

according to the Criminal Procedure Ordinance,” (*) The

ensures that there is no government

news censorship.

(₫) We can be guided by reading a regular L

commentary on murrent affairs in they of a newspaper. (*) The American Government requires

for

all locally-made producte to be exported to the United States ·

f. Which Government departmentI

(*) 188ues Commonwealth Proferença Certifias tes ?. (b) holds examinations for coxswaina?qu (c) has a loans find for both farmers and rishafson? (d) keeps a register of births and deatha?- (e) gives advise to loɑai trade union, offigiaiat

16. (a) Name the body which advises the District

Commissioner to his administration of the' Net Territories.

(b) What no-Government body advises Government

on the admission and selection of candida tea for senior posto in the Civil Service! (a) Who is the Governor's chief spokkaaman ? (d) What rank is "8.3.P,” in the Hong Kong Police

Foros?

(0) What is the annual expenditure of GovernIDDIE

in maintaining the British Garrison in Hong 17.

above, the buyer quantity 04, but

quantity only at arý ploda whlak pot agreed on

nd willing to

p2 1a (according

dity

the squilibrizŻN

cerchiage in the

produce a similar)

modity. The

ja said to be joint,

›re petről, and

Ghan one

for one

7. Choose the NEAREST answer for mach" statement.

(()) The proposed underground ra

objected behavo:

(1) It is impractical.

(11) it is too expensive,

my: system

(111) it takes 16-17 years to build

(iv) it cresents health hazards to passengera

using it

(b) About (1fty per cent of the teachers in Hong

Kong Arc Mureva2ified benaučnik.

(1), there are hot enough, tạ

Vasa not enough ver

(朱兜轉第三張第三言)

training

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