Queenie Wu 2017 DSE Econ MC explanation 2017 DSE Econ MC 13
多項選題詳解
選了幾條該年比較多考生做錯的題目. 同學仔要留意這類題目會有很高的機會再次出現在未來的試題中.
2017 MC13 Option D
思考問題: 為什麼發展商傾向興建較高質量的樓房於靚景地皮之上? 與需求定律之關係.
Queenie's DSE Econ websites: www.queeniewu.com www.dseecon.com
2017 DSE ECON MC13
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Which of the following is INCONSISTENT with the law of demand (LOD)?
Important concepts: testing: relative price change after adding (or deducting) per unit tax vs ad valorem tax
Option A: The abolishment of per unit import tariff on garment results in a rise in the quality of imported garments.
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Queenie's explanation on 2017 Econ MC 13:
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Let:
Ph be the price of high quality garment
Pl be the price of low quality garment
T be the per unit import tariff
Attention: the question wants us to REMOVE the per unit tax, then find the statement which is INCONSISTENT with LOD.
[Still remember the story of seat belt law (the story of speeding) I explained in class? How about the story of why HK women tend to have low birth rate in recent years? ]
(Ph + T) / (Pl + T) => Ph / Pl
Result:
Relative price of high quality garments will increase after the tax removal
Prediction:
According to the law of demand: P and Qd are negatively related. Thus, we can conclude that people will import less high quality garments after the tax removal. i.e. results in a decrease in the quality of imported garments.
Option A is INCONSISTENT with the law of demand
Option D:
Developers tend to build higher quality housing units on a piece of land with a good view.
Students may ask, "As there is no tax mentioned, how can we use the above relative price formula?" We have to think it in an indirect logic flow as following:
We can apply the same logic. Let's try to consider the expensive land price as a per unit tax. How will the relative price of high quality housing units change after adding a per unit land price?
Ph / Pl => (Ph + T) / (Pl + T)
Relative price of high quality housing units will decrease after adding per unit tax! Thus, developers tend to build higher quality housing units on a piece of land with a good view.
Option D is CONSISTENT with the law of demand
Queenie's remind: This is an important question on the topic of application of law of demand. Students have to practise more regarding the change of relative price of a product under the case of per unit tax as well as ad valorem.
Queenie's question for students to think: How will the relative price of high quality garments change if the government add a ad valorem of the imported garments?
Welcome to ask me any question.
Queenie Wu DSE Econ Exam Skill Hunting Tips Class
Date: mid Jan - March
Venue & time: every Saturday 11:00 in Calvinsun Education, Price Edward classroom
Wanna to capture star in DSE Econ? Follow my step-by-step full marks logic flow.
Looking forward to seeing you in my classroom.
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Queenie Wu DSE Econ Tips Mock: March
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