Adsorption and co-adsorption of ethylene, acetylene and hydrogen on Pd-Ag particles, supported on thin alumina films, have been studied by temperature programmed desorption (TPD). The TPD results show that adding of Ag to Pd suppresses overall hydrogenation activity but increases selectivity towards ethylene, i.e. similar to that observed on real catalysts. The results are rationalized on the basis of a complex interplay between surface and subsurface hydrogen species available in the system, whereby the latter species are the most critical for total hydrogenation of acetylene to ethane.