Micro (1,3)

• What is the main factor causing a decrease in restaurant dining?

  Technological advances like food delivery apps
• Why are food delivery apps considered substitutes for dining out?

  They save time and provide convenience
• What industry is declining due to online articles replacing newspapers?

  Print journalism
• How have e-commerce businesses affected the pricing of online news sources?

  Lower costs lead to lower prices for consumers
• What major global event has impacted the aviation industry significantly?

  The coronavirus pandemic
• How did the pandemic affect the demand for plane tickets?

  Demand dropped due to travel restrictions
• What was the impact of the pandemic on airline workers?

  Many were put on furlough or made redundant
• What happened to e-commerce sales during national lockdowns?

  Sales soared as consumers turned online
• By what percentage did Amazon's profits increase in 2020?

  200%
• What was the effect of gym closures on Peloton's demand?

  Demand for Peloton's services skyrocketed
• What percentage did Peloton's revenues rise during the pandemic?

  172%
• What is price elasticity of demand?

  It measures how demand changes with price
• Which industries are considered price elastic?

  Furniture stores and motor vehicle providers
• Why is the demand for electricity considered price inelastic?

  Few substitutes and it's a necessity
• Why do perfectly elastic goods not exist in reality?

  Consumers may prefer convenience over price
• What does unitary price elasticity mean?

  Quantity changes proportionally to price
• What event caused a decrease in supply in the supermarket industry?

  Trade deal with the EU and tariffs
• How do tariffs affect the supply of goods?

  They increase production costs, reducing supply
• What can natural disasters do to housing supply?

  They can reduce supply by destroying homes
• What is the effect of innovation on supply curves?

  Innovation can shift the supply curve to the right
• What does perfectly elastic supply mean?

  Firms can increase supply without limits
• How does spare capacity affect price elasticity of supply?

  More spare capacity means more elastic supply
• How does government policy affect housing supply?

  Policies can restrict new housing developments
• What was the objective of biotechnology firms during the pandemic?

  To discover and distribute a vaccine
• How did Moderna's pricing strategy reflect their objectives?

  They aimed to profit maximize with high prices
• What ethical objective did Pfizer have regarding their vaccine?

  To distribute it free of charge
• How does Lush's ethical stance affect their market share?

  It strengthens their brand and increases market share
• What was British Gas's intention behind raising gas prices?

  To maximize profits
• What was the consumer reaction to British Gas's price increase?

  Major backlash from customers
• What is the main objective for firms during the pandemic?

  Survival
• What are the characteristics of perfect competition?

  Many buyers and sellers, low barriers, homogenous goods
• How has technology affected the fashion industry?

  Lowered barriers to entry and increased sellers
• What is a characteristic of an oligopoly?

  High barriers to entry for new firms
• How do the Big 4 supermarkets maintain their market share?

  Through land banking and CSR initiatives
• What is the significance of Morrisons paying staff a minimum of £10 per hour?

  It enhances their corporate social responsibility
• Why can budget airlines offer low prices?

  They lease planes, reducing operating costs
• What type of market structure does the UK supermarket industry represent?

  Oligopoly
• What percentage of market share do the Big 4 supermarkets own?

  More than 70%
• What is 'land banking' in the context of supermarkets?

  Buying land to prevent competitors from building
• How do the Big 4 supermarkets enhance their market share through CSR?

  By paying staff a minimum of £10 per hour