Statement (1): The value of exports of services.
Statement (2): The value of imports of goods.
Statement (3): The income earned by foreign residents working in Hong Kong. hkcee 2010 econ paper 2 q2
Answer:
Equilibrium price is the price at which quantity demanded equals quantity supplied. There is no tendency to change.
Marking notes:
Reasoning:
Diagram explanation:
Answer:
Equilibrium price rises, equilibrium quantity falls.
Common mistakes: