(a)[8]
The Government wants to persuade people to take exercise and improve their health (see Appendix 3). Identify and explain two possible external benefits that could result from an increase in the number of dance studios.
(b)[12]
Consider how the following three changes in the economy might affect DADS. Which change do you think will have the biggest effect on DADS? Justify your answer. Fall in unemployment. Rise in the annual tax paid on buildings used by the business. Rise in the number of children wanting to dance. Biggest effect.