Statistics	Units	2016	2017	2018	2019	2020
Real GDP (billions)	National currency	2710.34	2813.09	2893.16	2844.56	2671.57
Nominal GDP (billions)	National currency	2490.44	2659.38	2835.12	2844.56	2688.54
Real GDP per capita	National currency	367398.57	379474.85	386455.17	378225.72	359647.43
Nominal GDP per capita	National currency	337590.34	358741.15	378702.58	378225.72	361931.53
Unemployment rate	Percentage	3.393	3.127	2.815	2.932	5.828

1 a. Following the instruction above to find the missing values of A1 to A4. (Give your answer correct to 2 decimal places) (2 marks)

b. Based on the table above, calculate the population size, real GDP growth rate and nominal GDP growth rate of Hong Kong in 2020. Show your workings. (Give your answer correct to 2 decimal places) (3 marks)

c. Based on the result in part b, what can you infer about the inflation rate of Hong Kong in 2020, positive or negative? Show your working. (2 marks)

d. Based on the table above, what can you infer about the population growth rate of Hong Kong in 2020, positive or negative? Briefly explain your answer. (2 marks)

e. Given that the average unemployment rate of Hong Kong from 2011 to 2020 is 4.59%. In 2018, which phase of the business cycle best describes Hong Kong's economic situation? How about that in 2020? Briefly explain your answers. (2 marks)

2. (14 marks) Suppose Razor is the only pharmaceutical firm that sells a flu vaccine in an economy. It faces the following demand, marginal revenue, marginal cost and total cost functions.

Demand: P = 70 - Q

Marginal revenue: MR = 70 - 2Q

Marginal cost: MC = 10 + Q

Total cost: TC = 20 + 10Q + 2 2

a. Find the profit maximizing output and the price of the vaccine for the firm. Show your steps. (3 marks)

b. Derive the average cost function. Show your workings. (2 marks)

c. Use the result of part a and b, find the profit level of the firm. Show your workings. (2 marks)

d. Suppose the government is considering a price ceiling 10 percent below the price derived in part a.

I. Suggest one reason for the imposition of the price ceiling. (1 mark)

II. i) With the price ceiling, what is the price for the vaccine? (1 mark)

ii) Given the price in part i, how many vaccines will be purchased in the vaccine market? (1 mark)

iii) With the price ceiling, is there any shortage in the vaccine market? Explain your answer. (4 marks)