In Paper 2 (Essays), markers looked for a specific structure.
Students frequently argued that a firm would shut down simply because it was making a loss. The correct HKCEE logic required proving that the firm could not cover its Variable Costs (not Total Costs). hkcee econ past paper
If demand is , the percentage decrease in quantity demanded is smaller than the percentage increase in price ( Therefore, the total expenditure ( ) will increase . (c) Tax Classification (2 marks) In Paper 2 (Essays), markers looked for a specific structure