In the HKCEE Economics Syllabus, early multiple-choice questions uniformly evaluate the baseline definitions of microeconomics. Question 2 generally circles back to the rigid definitions established by classical theory:
Goods used as inputs for making other goods (e.g., flour bought by a bakery). These are excluded. hkcee 2010 econ paper 2 q2
Equilibrium: 10 – 0.05Q = 4 + 0.05Q → 6 = 0.1Q → Q=60. Then P (paid by consumer) = 10 – 0.05×60 = $7. P received by producer = $7 – $2 = $5. In the HKCEE Economics Syllabus
Remember that barriers to entry dictate long-run economic profits. If a question option mentions entry of firms, connect it immediately to the erosion of supernormal profits. hkcee 2010 econ paper 2 q2