Question:

3 Since 2020, the revenue gained in the video gaming industry has been higher than the revenue in the film industry. The fastest growing part of the video gaming industry is mobile gaming, which
is a substitute for console gaming. Young people are spending many hours playing video games
and some governments are concerned that this may have negative effects on their health and
educational progress. Therefore, regulations have been introduced to reduce the time young
people spend playing these games.
(a) Identify two pairs of products, not in the gaming industry, which are substitutes. [2]
(b) Explain two reasons why a firm’s revenue may increase. [4]
(c) Analyse two economic consequences of having a large proportion of the population aged
under 16. [6]
(d) Discuss whether or not it would benefit the economy if a government imposed regulations on
video game use by young people. [8]

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