(a) a) train travel

Iii ) taxi travel

(b) firms can work with their horizontal merger to create new product
into order to attract customers This increase their revenue therefore
.
,

they can extend their business ,

leads to globalisation s .
Next, firms can
divide the cost of production will their to reduce pressure
mergers and so
also to increase productivity because they can purchase more capital
,
,

and hire more labours leads to economies of scale Both firms work.

together can have market shares , so both side of customers will come

together .

(c) a) 6160
22%
✗100 =

28000

( ii ) percentage change in Quantity of demand

PE D=
percentage change in price

= % ☐ Qd =
-
1.2
15
always positive
= % Dad =
If%
(d) In order to go for luxury holiday people by bus train
go , , ,
car
,
or

by air travel Let's talk air travel now days air travel
.

,
is expensive .

consumers prices between different airline company And

may compare .

when holiday is coming , more people would travel around this leads to ,

a
high demand of air travel At this time price of airlines will.
,

high demand If turn around low in price will lead

increase due to .
we
,
a

to high demand Small change in price will lead to big change

a . a on

the demand People can switch from luxury holidays to normal holidays
.

due to the change in price .

(e) State owned enterprise easily receive financial supportcan

from government Government

.
always invest airlines and always keep
can on

funds circulated Next state owned

.

, enterprise can always receive to favorable

policies for example

,
: tax breaks on certain products and low interest rates on

loans from state-owned banks .

Also , government can more jobs in order to

reduce
unemployment Government-owned enterprise
. to large and can access a

stable potential customer base But government may have strict control and
.

restrictions because it needs to make

, everything is the line thereforesure on
,

creativity and openness may decrease For private sector enterprise it will be
.
,
limited disclosure ,
means it will work
secretly ,
it decrease counterfeit
object The enterprise is privately control every decision will made by
.

,
its own .

But the amount of capital will be limited Also enterprise need to

, . request
for financial support from bank by itself, and there's also another thing is limited

to credit
access .

Every responsibility must take by it own Also, the

.
enterprise will

lack of professional advice .

(f) In the demand for pilots increase as this shows up the

2015
, , ,

price also increase , which brings new quantity for demand We . can

see DI shift outwards to D2 ,

as this shows up ,
the demand increase , this
will result to demand This leads to price increase, it shows Pi shift
excess .

to Pa
,
then Q , shift Qa This shows that more people willing to work as a
.

pilot ,
as
salary may
increase .

(g) No ,
a cut in taxation will increase inflation in a several ways .

First reduce in taxation results in

,
reduce in cost Firms. are

more willing to
produce more goods and services .

more
people willing to pay for it this will lead to excess demand , ,

when the supply and quantity of demand is in disequilibrium Also when .

a cut in taxation appears people don't have to pay ,

so much tax , which increase
spending power .
Overall it leads to inflation But
,
. a cut in taxation
,

will also creates more competitive environment As tax is reduce firms are
.
,

willing to
buy more capital hire labour to increase quantity and quality
,
.

As more products get into the market firms would

, adjust the price to a

lower price This would lead to deflation

.
.

1) Government can increase in taxation to reduce inflation As .

tax increase people need to pay

,
more on direct tax and indirect
tax People would get lesser salaries
.

,
and also
, things are
getting expensive

contraction ary

Finest
Fiscal -

policy
-

Monetary ,÷
9 Interest rate
>
-

decrease government spending -