Explain two ways the information in the government report outlined in Appendix 3 might affect Jemi's restaurant. Way 1: . Explanation: . . . . . Way 2: . Explanation: . . . . .

Business
IGCSE&ALevel
CAIE
Exam No:0450_s25_qp_23 Year:2025 Question No:4(a)

Answer:

Award 1 mark for each way (max 2 ).
Award a maximum of 3 additional marks for each explanation of the way the information in the government report might affect Jemi's restaurant one of which must be applied to this context.

Relevant ways it could affect the restaurant might include:
- Increase in number of families demanding vegan meals - because the report suggests that eating more fruit and vegetables is healthy especially for children and therefore may attract more families to the restaurant
- Increase in demand for vegan food from the general population - as increased from 10\% to 25\% of the population eating only vegan meals trend forecast to increase in the future so likely for demand to keep increasing leading to growth in the market
- May increase competition with other restaurants adding vegan meals to their menus / new restaurants opening up - which may lead to fewer sales for Jemi's restaurant
- Finding suppliers of fruit and vegetables may become more difficult increased transport costs from buying from suppliers further away - more time taken to fetch deliveries
- Increased demand from more restaurants serving vegan meals increased demand for ingredients - possibly higher prices for ingredients - higher costs / higher prices

For example: Increase in the number of customers (1) as there is likely to be an increase in demand for vegan meals (app) because the government report suggests that eating more fruit and vegetables is healthy (1) especially for children and therefore may attract more families to the restaurant resulting in an increase in revenue (1).

Application could include: vegan target market; plant-based ingredients; meals; fruit and vegetables; \$50000; chefs; working 40 hours a week; 12 employees; increasing trend for people eating vegan meals; good for the environment; menus; recipes.

Knowledge points:

6.1.1.1. Main stages of the business cycle, e.g. growth, boom, recession, slump
6.1.1.2. Impact on businesses of changes in employment levels, inflation and Gross Domestic Product (GDP)
6.1.2.1. Identify government economic objectives, e.g. increasing Gross Domestic Product (GDP)
6.1.2.2. Impact of changes in taxes and government spending
6.1.2.3. Impact of changes in interest rates
6.1.2.4. How businesses might respond to these changes

Solution:

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