Edexcel A Level Economics B Paper 1: Markets and how they work June 2018 question paper 9EB0/01

Candy Kittens’ sales revenue in 2016 was £1.5m. Jamie Laing is planning for an increase in sales revenue of 12% by 2019.

Calculate the planned sales revenue for Candy Kittens in 2019. You are advised to show your working.

According to a new report, confectionery sales in the UK are predicted to grow, despite fears about the high levels of sugar in sweets. (Extract A)

Explain one external cost caused by the consumption of sweets.

Using Extract B, explain one supply factor that may have caused fluctuations in the price of sugar.

Research suggests that the biggest growth barrier for UK start-up firms is the UK tax system. (Extract C)

Using a supply and demand diagram, analyse the likely impact on the UK confectionery market of an increase in indirect taxes.

Discuss the benefit that adding value brings to Candy Kittens.

Jamie Laing used loans to start his firm. (Extract A)

Assess the benefits of this source of finance for a new firm such as Candy Kittens.

Assess the extent to which barriers to entry may restrict the growth of Candy Kittens.

Using Extract C, assess the extent to which cash flow forecasting is important to the survival of a new start-up business such as Candy Kittens.

Evaluate the extent to which the government’s cycling and walking strategy may impact the UK economy.

Using a suitable diagram, evaluate the importance of demand side policies in stimulating growth in the UK.