Economics 2281 · O Level · Demand

Demand — practice question

In Indonesia, some people play tennis. Yet badminton is the nation’s favourite sport. The equipment required to play it, including badminton racquets, is comparatively inexpensive. Players from the country win a large share of international tournaments. Leading Indonesian players earn ten times the average wage and over thirty times the wage of a cleaner.
(a)[2]

Identify two economic agents that make decisions.

(b)[4]

Explain how the following are related: • demand for tennis racquets and demand for badminton racquets • demand for tennis racquets and demand for tennis balls.

(c)[6]

Analyse why the majority of cleaners receive a low wage.

(d)[8]

Discuss whether a government should levy tax on sports equipment.

Worked solution & mark scheme

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