Market (Edexcel A Level Business): Exam Questions

Exam code: 9BS0

2 hours18 questions
1
4 marks

Read the following extracts (A to D) (opens in a new tab) before answering

Using the data from Extract B, draw a supply and demand diagram for airline tickets to show the likely effects of the change in jet fuel prices between 2014 and 2015

2
4 marks

Read the following extracts (A to D) (opens in a new tab) before answering

Using the data in Extract A, calculate, to 2 decimal places, the income elasticity of demand for takeaway meals. You are advised to show your working

3
4 marks

Read the following extracts (D to G) (opens in a new tab) before answering

Consumers aged 40–59 years old are the largest age group in the USA coffee market

Using the data in Extract E, draw a demand and supply diagram to show the likely effects of the estimated change in population for the 40–59 age group on the USA coffee market

4
4 marks

Read the following extracts (D to G) (opens in a new tab) before answering

Uber intends to divert a ‘significant portion’ of its planned $1 billion marketing budget to India

Explain one way in which increased marketing spending by Uber may affect demand for Ola's ridesharing services

5
4 marks

Extract D

Estimates of price elasticity of demand (PED) of car brands

Table of estimated price elasticity of demand (PED): Audi −4.63, Ford −2.75, Land Rover −6.75, Suzuki −1.64, Toyota −2.65 and Volkswagen −2.31.

(Source: adapted from https://repository.library.northeastern.edu/ files/neu:349589/fulltext.pdf)

In 2019 the price of a Ford Endeavour rose from 30m Rupee to 30.9m Rupee. Using this data and the information from Extract D, calculate the percentage change in quantity demanded for the Ford Endeavour in 2019.

State your answer to two decimal places. You are advised to show your working

6
4 marks

Read the following extracts (A to C) (opens in a new tab) before answering

Using the data in Extract A, draw a supply and demand diagram to show the possible impact of the change in the price of gold, between 6 December 2019 and 5 January 2020, on the luxury watch market.

7
4 marks

Extract A

GreenBite Ltd

GreenBite Ltd is a UK-based food manufacturing business that produces chilled plant-based meals for the mass market. The business sells its products through major UK supermarkets and directly to consumers via its own online ordering platform. GreenBite positions itself as a convenient and affordable alternative to eating out, targeting customers who want quick meal options without cooking from scratch.

GreenBite’s management team is analysing how changes in household income have affected demand for its online products. During 2023, food price inflation remained high and many households looked for cheaper alternatives to eating out, including ready-made meals purchased online.

Table comparing UK household disposable income and GreenBite online orders from 2022 to 2023, showing a 2.3% income decrease and 11% order increase.

Extract B

Working at GreenBite’s production site

GreenBite employs 220 workers at its main production facility. Most employees work on food preparation, packaging and quality checks. Jobs are clearly defined and production follows a set process to ensure food safety standards are met.

Employees are paid an hourly wage, with the opportunity to earn a monthly bonus if production targets are met and wastage is reduced. Training is provided when new equipment is introduced, but promotion opportunities are limited because the business has a relatively flat organisational structure.

GreenBite also offers flexible shift patterns, which are popular with employees who have caring responsibilities. Staff surveys suggest that while pay is important, many employees also value job security and predictable working hours.

Extract C

Marketing GreenBite products

GreenBite’s marketing focuses on health, convenience and sustainability. Its packaging uses simple designs and clearly displays nutritional information. The business has invested heavily in digital marketing, including social media advertising and partnerships with food bloggers.

In 2023, GreenBite launched a new marketing campaign based around the idea of “easy everyday choices”. The campaign aimed to attract customers who were not fully committed to plant-based diets but wanted to reduce their meat consumption.

Market research showed that brand awareness increased from 18% to 26% following the campaign. However, some customers continued to view GreenBite meals as more expensive than supermarket own-brand alternatives.

Using the data in Extract A, explain one way demand for GreenBite’s online products is affected by changes in household income.

8
4 marks

Extract A: UK average income and Deliveroo orders

Table comparing UK average annual income and Deliveroo orders: 2020 income £31,487 and 74.5 million orders; 2021 income £31,285 and 148.8 million orders; percentage changes −0.64% and 99.73%, respectively.

(Source: adapted from CNBC and Statista, 2021)

Using the data in Extract A, explain one way demand for online food deliveries is affected by income elasticity of demand.

9
4 marks

Extract D: Estimated effects of price changes on quantity demanded for games consoles in 2004

Table of estimated effects of price changes on games consoles: PlayStation 2, price change 0.59%, quantity demanded change minus 2.10%; Xbox, 1.47% and minus 4.47%, respectively.

Using the data in Extract D, calculate the difference in price elasticity of demand for PlayStation 2 and the Xbox. State your answer to 2 decimal places. You are advised to show your working.

10
4 marks

Extract A

Global smartphone shipments (millions)

Table of global smartphone shipments in millions: Samsung shipped 69.2 million of a 371.6-million total in 2021 Q4, and 58.3 million of a 303.9-million total in 2022 Q4.

(Source: adapted from https://www.counterpointresearch.com/global-smartphone-share/)

Using the information in Extract A, calculate the difference in Samsung's global market share of smartphone shipments between Q4 2021 and Q4 2022.

State your answer to 2 decimal places. You are advised to show your working.

11
4 marks

Extract E

Monthly sugar price in US cents per lb (pound in weight), 2024-2025

Line graph of sugar prices, measured in US cents per pound, from 2024 to 2025: the price fluctuates but falls overall from about 23.5 to 18, with a sharp drop to below 20 before 2025.

Using the data in Extract E, draw a supply and demand diagram to show the possible impact of the change in the price of sugar between 2024 and 2025, on the market for cola drinks.

1
12 marks

Read the following extracts (A to D) (opens in a new tab) before answering

The average price elasticity of demand for clubs in the health and fitness market is estimated to be -2.

Assess the likely impact of media health campaigns on the price elasticity of demand for health and fitness clubs

2
8 marks

Read the following extracts (A to D) (opens in a new tab) before answering

Using the data in Extract A, assess two reasons why income elasticity of demand for holidays may be income elastic

3
8 marks

Read the following extracts (A to D) (opens in a new tab) before answering

Using a supply and demand diagram, assess two reasons why live entertainment business revenues in the UK might have increased in 2017

4
10 marks

Read the following extracts (E to H) (opens in a new tab) before answering

Assess the factors that have improved the financial viability of live venues such as Derby Theatre and the National Theatre

5
8 marks

Extract D

51 years of independent retail

Jonathan Trumbull Ltd was founded in 1971 in Norwich, by John and Roger Kingsley. John's son, David Kingsley, is still a director and manager and is one of 20 staff. Jonathan Trumbull Ltd owns three stores: Trumbull, a traditional men's clothing store; Ginger, a high-end women's fashion store; and Hatters, which focuses more on contemporary fashion.

Trumbull, Hatters, and Ginger offer a range of fashionable classic and casual wear, aimed at adult customers on a range of incomes. The business sells clothing from a variety of brands, including Armani, Tom Ford, and Moschino.

Norwich is the largest city in the East of England and is the main regional centre for shopping. It has regularly been voted one of the top five retail destinations in the UK.

(Source: adapted from jonathantrumbull.co.uk and interview with manager)

Extract E

Ginger reopens in its former shop

Ginger is part of the Jonathan Trumbull Ltd retail group, one of Norwich’s longest-established businesses. It has moved back to its original premises in Timberhill, after a short spell being based in the Trumbull store in Norwich.

Beckie Kingsley is the store manager. She is the daughter of David Kingsley, a Jonathan Trumbull director, and is likely to be his successor. Beckie said: “When the building became available, we thought we would come back. It is lovely being back in Timberhill. It has a great community spirit, and it is full of thriving independent shops, including other fashion retailers. Everybody is willing to help each other out and we all share ideas. Timberhill is a beautiful street, near lovely green areas. Customers have welcomed us back.”

(Source: adapted from https://www.eveningnews24.co.uk/news/ business/22321802.high-end-boutique-reopens-former-shop/)

Extract F

Extract from Jonathan Trumbull Ltd’s statement of financial position

Statement of financial position extract (£), 2022/2021: fixed assets 30,683/30,568; inventory 639,340/687,560; receivables 13,518/45,171; cash 491,844/299,732; total current assets 1,144,702/1,032,463; creditors due within 12 months 345,824/417,974.

(Source: adapted from © Crown copyright)

Extract G

Competition for Jonathan Trumbull Ltd

In 2023, the multinational clothing retailer, Urban Outfitters, announced the opening of its store in Chantry Place, Norwich's biggest shopping mall. Urban Outfitters became the latest competitor to Jonathan Trumbull Ltd to open, after its planning application was approved by Norwich City Council.

Urban Outfitters began in 1970 in the USA, and now operates more than 200 stores in North America and Europe. Urban Outfitters sells a mix of on-trend women's and men's clothes, including shoes, hats, bags, and a collection of handpicked vintage clothing known as Urban Renewal.

Online sales increased by 150% in 2022, however Urban Outfitters is also opening new stores.

(Source: adapted from eveningnews24.co.uk and marker.medium.com)

Assess two factors that could influence the demand for new clothing sold by Jonathan Trumbull Ltd.

1
20 marks

Read the following extracts (E to H) (opens in a new tab) before answering

In order to maximise profit in long-haul routes to North, Central and South America Ryanair is considering two options. Air Europa flights could be rebranded as RyanFlair services with high-quality in-flight services such as gourmet meals and advanced entertainment facilities. Alternatively it could apply Ryanair's no-frills model to the service, with limited hand-baggage-only seats sold for as little as $20

Evaluate these two options and recommend which one would be better for Ryanair to maximise profit

2
20 marks

Read the following extracts (A to D) (opens in a new tab) before answering

In order to achieve their objective of maximising sales revenue, Live The Adventure's owners are considering offering either all-inclusive budget hotel options or luxury self-catering lodge accommodation for its winter sports packages in Europe. The average price elasticity of demand for winter holidays is -2.5

Evaluate these two options and recommend which one is most likely to achieve Live The Adventure’s corporate objective