2024 HCI Prelim EC H1 Paper 1_QP

1 © Hwa Chong Institution 2024 8843/01/A/C2 Prelim 2024 HWA CHONG INSTITUTION C2 Preliminary Examinations 2024 Higher 1 CANDIDATE NAME CT GROUP 23 ECONOMICS Paper 1 Case Study Questions Additional Materials: Answer Booklet 8843/01 9 September 2024 3 hours READ THESE INSTRUCTIONS FIRST Read all instructions printed on the cover page of the 12-page answer booklet carefully. Write all your particulars clearly on the cover page of the 12-page answer booklet. Write in dark blue or black pen on both sides of the paper. You may use a soft HB pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid and tape. Answer ALL questions. Write all your answers in the 12-page booklet and subsequent 4-page booklets (if required). Do all your rough work in pen using the answer booklet and cross it through without making it illegible. Do not tear out any part of this booklet. Begin case study question 1 and question 2 on a new page within the answer booklet. All work must be handed in. If you have used any additional 4 -page booklets, please insert them inside the 12–page answer booklet. The number of marks is given in brackets [ ] at the end of each question or part question. You may use a calculator. You are advised to spend several minutes reading through the questions before you begin writing your answers. You are reminded for the need for good English and clear presentation in your answers. This document consists of 9 printed pages and 1 blank page. [Turn over

2 © Hwa Chong Institution 2024 8843/01/A/C2 Prelim 2024 Answer all questions Question 1: Trends in the market for e-commerce Figure 1: Global sales revenue for e-commerce, 2014 to 2027 (US$ billion) *forecasted from 2023 onwards Source: Statista Table 1: Estimated share of global e-commerce revenue by segments, 2023 (%) Segment Percentage Share (%) Electronics 23.1 Fashion 21.1 Toys and Hobbies 19.7 Beauty, Health and Personal Care 10.4 Others 25.7 Source: Statista Extract 1: Consumer sensitivity to prices in e-commerce Price sensitivity is a crucial consideration for e -commerce firms as it influences pricing decisions, revenue optimisation, and competition within the online marketplace. By understanding it effectively, e-commerce firms can gain a competitive edge and enhance their profitability. Online shoppers tend to be more price sensitive compared to traditional brick-and-mortar shoppers. The ease of comparing prices across different online retailers and the abundance of options available make it convenient for consumers to find the best deals . As a result, consumers are more likely to switch to alternative onl