Qn: The Singapore F1 Grand Prix scheduled in Sep 2008 will not only be the biggest sporting
hosted by Singapore, but ti is set to make history as the first-ever night race in F1 history. To
defray the cost of hosting the event, a tax will be imposed on hotel accommodation.
a) With the aid of a diagram, explain the possible effects of the Singapore F1 Grand Prix on the
market for hotel accommodation. [10]
With the unprecedented event in S’pore, there will be a Step 4: Analysis. Remember to focus on i)
significant rise in the DD for hotel accommodation. diagram(s), and examples. This is key in
micro.