Hkcee 2010 Econ Paper 2 Q2 -

Agreements on price (collusion) are characteristic of oligopolies , not perfect competition. Perfectly competitive firms act independently. The "Long Story" (Context)

Suppose the government raises the minimum price to $80. Find ( Q_d ) and ( Q_s ). hkcee 2010 econ paper 2 q2

Quantity demanded = 10 tonnes, quantity supplied = 20 tonnes. This creates an excess supply (surplus) of 10 tonnes. hkcee 2010 econ paper 2 q2