Since 2020, revenue in the video gaming industry has been greater than revenue in the film industry. The most rapidly expanding section of the video gaming industry is mobile gaming, which substitutes for console gaming. Young people are spending many hours on video games and some governments worry that this could harm their health and educational progress. For that reason, regulations have been introduced to cut the amount of time young people spend playing these games.
(a)[2]
Identify two pairs of products, outside the gaming industry, that are substitutes.
(b)[4]
Explain two reasons why a firm’s revenue may rise.
(c)[6]
Analyse two economic consequences of having a large share of the population aged under 16.
(d)[8]
Discuss whether or not it would benefit the economy if a government introduced regulations on video game use by young people.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Tea versus coffee” …