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(ECON2103)[2013](s)midterm~hchenao^_11447.pdf
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20 March, 2013
Do not open or turn over this booklet until you are told to do so
Name (as shown on Student ID Card) and please put your SURNAME/FAMILY NAME first:
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Section: Lecture 1 / 2 / 3 (please circle the appropriate one)
Signature: ______________________________________
Instructions (Please read carefully):
. Fill in your name, Student ID, section info and your signature on this COVER
SHEET, AND on the BUBBLE SHEET . The exam contains 2 parts: Part A and B. You have to answer all questions. . All answers of Part A SHOULD be put in the SPACE provided after questions . All answers of Part B SHOULD be put on the BUBBLE SHEET ONLY . You have 90 minutes to complete the exam
GOOD LUCK!
Please write your answers in the SPACE provided after questions. . Incomplete and unclear handwriting that leads to misunderstanding of your answers by us would be at your disadvantage.
Question 1: (Total 20 points)
The Hong Kong Government adopted recently certain measures to suppress the speculation on properties in Hong Kong. Lets assume these measures effectively reduce the demand of property for sales in Hong Kong.
Despite the reduction in the demand of property for sales, we cannot observe significant drop in the market price of Hong Kong properties, but we can observe the transaction volume (number of property sold/transacted) reduced sharply: (i) Can you explain the above observations in a graph of Demand-Supply (analysis)? (10 points) At the same time, we can observe the rental market in Hong Kong is getting very hot in terms of very sharp rise in the rental level and transaction volume (number of apartments rented out) after the Hong Kong Government introduced the anti-speculation measures. Please use words and graphs to explain in detail: (ii) Why does rental market of Hong Kong turn hot after the demand of property for sales in Hong Kong reduced? (8 points) And,
(iii) please comment on the elasticity of the supply of property for rent in Hong Kong (4 points) (iv) Given the sharp rise of rental level in the rental market of Hong Kong properties, please comment on the relationship between supply of property for sales and supply of property for rent in Hong Kong currently? Please explain your reasoning in detail. (8 points)
End of the Part A
Part B: Multiple Choices (Total 70 points, 2 point for each question)
Choose the one alternative that best completes the statement or answers the question.
A) Teresa can attend the concert only if she takes her sister with her.
B) Wing is hungry and homeless.
C) Mike must repair the tire on his bike before he can ride it to class.
D) Tony must decide between going to Singapore or Thailand for spring break.

2) For a college student who wishes to calculate the true cost