YIJC 2023 JC2 H2 Prelim 9570 P1 SAMS

2023 JC2 H2 Prelim P1 CSQ 1 Suggested Answers a(i) With reference to Table 1, describe the change in healthcare prices in Singapore from 2017 to 2022. [2] Suggested Answer: Prices of healthcare in Singapore generally increased [1] except for the year 2020 when prices fell [1]. Markers’ comments: - This question is straight forward and a large pro portion of students were able to score full marks. - There was a large handful of students who lost ma rks because they were either careless or confused about falling inflation rate. These students interpreted falling inflation rate as falling prices. - There were also students who lost marks because t hey described the change in inflation rates, instead of describing the change in prices. (ii) With reference to Extract 1, explain one deman d and one supply reason for the above trend in healthcare prices. [4] Success Criteria: Explain how one demand factor led to the increase in healthcare prices. [2] Explain how one supply factor led to the increase in healthcare prices. [2] Suggested Answer: Healthcare price has increased (positive inflation rate). Demand factor: From Extract 1: - Covid pandemic  increase in need for treatment, preventive care  increase in demand for healthcare services From Extract 2: Demand factor: - Aging population – greater proportion of populati on who has a greater need for healthcare  increase demand for healthcare services - OR - Better quality healthcare – increase demand for t reatments to improve quality of life. Supply factor: From Extract 1: - Govt rein in subsidies  reduction in subsidies provided  rise in COP  decrease in supply of healthcare services. - Rising healthcare costs  rising COP  decrease in supply From Extract 2: - Shortages of medical workers  Increase COP  decrease supply

2m for each well-explained and contextual reason If evidence is taken from Extract 2, cap at 3m If factor is generic but well-explained, cap at 1m for DD factor and 1m for SS factor. Markers’ comments: - Good answers were able to identify the demand and /or supply factors from Extract 1 and applied theory (i.e. demand and supply determinants) to explain why the prices were rising. - Some answers lost marks because: o the answers did not refer to Extract 1, e.g. agein g population o the answers did not make any reference to the case material, e.g. change in income - There were also misconceptions observed. o Students confused change in quantity demanded with change in demand or change in quantity supplied with change i n supply. E.g. when the demand increase, the shortage will cause upward pressure on prices and this will lead to an increase in supply. This is wrong. An increase in price will lead to an increase in quantity supplied instead. o Students mistook price elasticity or inelasticity to explain the extent of shift in demand and/or supply curves. - A large proportion of students