MI 2024 PU3 H2 Econs Prelim P1 QP [FINAL]

Class Adm No Candidate Name: [Turn over 2024 Preliminary Examinations Pre-University 3 ECONOMICS 9570/01 Paper 1: Case Study 28 August 2024 2 hours 30 minutes Additional Materials: Answer Booklet READ THESE INSTRUCTIONS FIRST Write your name and class on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams or graphs. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer all questions. You are reminded of the need for clear presentation in your answers. An answer booklet will be provided with this question paper. You should follow the instructions on the front cover of the answer booklet. If you need additional paper, ask the invigilator for a continuation booklet. The number of marks is given in brackets [ ] at the end of each question or part question. This question paper consists of 9 printed pages and 1 blank page. H

2 9570/01/MYE/MI/24 Answer all questions. Question 1: Ride-hailing and taxi industry in Singapore Figure 1: Average daily number of street-hail trips and ride-hail trips (annualised) *Street-hail refers to rides flagged down on the street or hired at taxi stands. Only taxis are allowed to provide street -hail rides, with metered fare calculated based on the distance travelled, and surcharges may apply. Ride-hail refers to rides that are booked (e.g. via app or call booking). Both taxis and private- hire cars are allowed to do ride-hail jobs. Ride-hail trip fare can be metered fare or a flat fare, depending on what is chosen at the point of booking. Source: Land Transport Authority Singapore, accessed on 26 July 2024 Extract 1: Taxi versus ride-hailing market in Singapore Many consumers today choose booking a car on ride -hailing platforms over taxis as they prefer the certainty of knowing the fare in advance – unlike a metered fare, and the option to compare prices between different mobile applications (apps). “The market has shifted very decisively towards ride -hailing,” said Prof Theseira. “Booking through an app is the way most consumers in Singapore want to go.” Aside from a large number of potential passengers on apps, drivers are also choosing ride - hailing due to the cheaper rental of a private car compared with a taxi. Taxi companies, too, have been adapting, as the two sides try to offer the best of both worlds to cater to different consumers. For instance, the booking platforms of taxi firms now have a flat-fee model, which mirrors the ride-hailing fare model, and gives users an option other than metered fares. Another difference between booking a car on ride-hailing apps and street-hailing a taxi is the location surcharge. To cushion the impact of fuel prices and ensure a better supply of taxis 0 100 200 300 400 500 600 2021 2022 2023 Number o