Photo AI
Copy the diagram into your answer book - Leaving Cert Economics - Question 2 - 2007
Question 2
Copy the diagram into your answer book. Clearly label each of the lines marked 1 to 3. Show on your diagram: - equilibrium price (use label P1) - equilibrium quanti... show full transcript
Worked Solution & Example Answer:Copy the diagram into your answer book - Leaving Cert Economics - Question 2 - 2007
Step 1
Step 2
Step 3
State and explain TWO possible reasons why the demand curve for iPods has shifted to the right.
Answer
- Increase in consumers' incomes: With higher incomes, consumers can afford to buy more iPods.
- Improvements in services available: Enhanced advertising and features of iPods attract more consumers, shifting the demand curve to the right.
Step 4
Step 5
State ONE complementary good for iPods and explain the effect on the demand for this complementary good if the demand for iPods continues to increase.
Answer
One complementary good for iPods is 'more download sites'. As the demand for iPods increases, the demand for more download sites will also increase, as consumers will seek additional content for their devices.
Step 6
State and explain TWO possible reasons for this development.
Answer
- Higher disposable incomes: Irish citizens can now afford more leisure activities like foreign holidays due to increased income.
- Wider choice of destinations: More air routes have opened, providing greater options for holidays abroad.
Step 7
State and explain THREE measures which the Irish Tourist Industry could take to encourage more people to holiday in Ireland.
Answer
- Reduce Prices: By offering competitive packages and discounts to attract more tourists.
- Marketing Campaigns: Conduct promotions that highlight Ireland as a travel destination, emphasizing its cultural and natural attractions.
- Improving Standards: Enhance the quality of services and facilities available to tourists to give them a better experience.