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Question:

3. Some people in Indonesia play tennis. However, badminton is Indonesia’s favourite sport. The equipment needed to play it, including badminton racquets, is relatively cheap. Players from the country win a high proportion of international tournaments. Top Indonesian players earn ten times
the average wage and more than thirty times the wage of a cleaner.
(a) Identify two decision-makers involved in economics. [2]
(b) Explain the relationship between:

• demand for tennis racquets and demand for badminton racquets
• demand for tennis racquets and demand for tennis balls.

[4]
(c) Analyse why most cleaners earn a low wage. [6]
(d) Discuss whether or not a government should tax sports equipment. [8]

Sample answers: