F.4 econ

2007-11-15 5:13 am
In recent years, more and more HK people have gone to Shenzhen to shop on weekends. It has been reported that the prices of goods are lower in Shenzhen.

Many people propoose imposing a departure tax as a solution. Suppose every person leaving HK by land had to pay a departure tax of $20.

i) What will be the effects of the departure tax on the price and the quantity transacted of goods in Shenzhen?Answer with the aid of a diagram.

回答 (1)

2007-11-15 10:35 pm
✔ 最佳答案
As the demand curve on the goods in Shenzhen shift to the left ( decrease in demand), both the price will and quantity transacted will fall. Assuming no change in supply.


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