Memorsing content can only take you so far, so use exam questions effectively to prepare yourself for the actual exam. This document will help you do so, it contains exam questions for this spec point. [A Level Economics Edexcel A, Exam Questions]
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Question 1a
‘Bettys’ is a luxury café, first opened in Harrogate in 1919 specialising in afternoon tea service. Since then it has opened a
further five branches in Yorkshire. It has no plans to increase the number of cafés. The six branches have 2 million customers a
year.
(Source adapted from: https://www.forbes.com/sites/sarahturner/2018/03/22/the-famed-yorkshire-cafe-that-blends-nostalgia-with-profits-and-
conservation/#7eb50cec7a4e)
(a)
Explain one likely reason why this business has remained small
[2 marks]
Question 1b
(b)
Explain why the previous expansion of this business could be described as ‘organic growth’.
[2 marks]
Question 1c
(c)
Assume ‘Bettys’ merges with a major tea leaf supplier. Which one of the following is most likely to be an advantage as a result
of this merger?
A. External economies of scale will increase efficiency
B. Greater control to lower prices of tea
C. Industrial diversification increases risks
D. Lower monopoly power in the café market
[1 mark]
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