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can anyone please post a link for 2005 paper mark scheme?
Thanks
Thanks
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thank uhttp://www.freeexampapers.com/get_past_papers.php?l=Past_Papers/IGCSE/Economics/CIE/2005 Jun/0455_s05_ms_3.pdf
xtremepapers doesn't have it, so got it from another site
alright thanks!because the rate of inflation is still positive meaning that the prices are still rising. falling RATE of inflation would only mean that the prices are rising but at a lower rate than before, nevertheless, they are rising! prices would only FALL when the rate of inflation would become negative .
its because the cost of production increases (because of the advertising cost) and increase in cost of production leads to decrease in supplyHey! In the past papers I saw 2 questions about advertising and it's effect on demand and supply. I understand that if advertising is successful, demand will increase,but I don't understand how supply will change-the mark scheme says supply decreases...but why would it decreases-wouldn't the firm want to produce more now???
Thanks!its because the cost of production increases (because of the advertising cost) and increase in cost of production leads to decrease in supply
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