1. (a) (i) Outline four factors that determine the supply of a good or service. (ii) Explain the difference between a movement along a supply curve and a shift in a supply curve. Use appropriate diagrams to illustrate your answer. (b) Read the following statements and indicate if they are TRUE or FALSE. Explain your answer in each case. (i) The cross price elasticity of demand for substitute goods has a negative value. (ii) Price Elasticity of Demand (PED) tends to be more elastic in the long-run than in the short-run. (iii) When demand for a good is price inelastic, a reduction in price will increase total sales revenue. (iv) Income elasticity of demand (YED) for luxury goods is positive. (c) Using the concepts of demand and supply explain, with the aid of a labelled diagram, how a shortage of tickets for a major concert may arise. The concert venue has a maximum capacity of 30,000 people. 2. Cadbury, Mars and Nestle dominate the chocolate industry in the European Union. (a) (i) State a market structure which most closely reflects the situation above, giving a reason for your answer. (ii) Outline two other key characteristics of this market structure. (iii) Explain, with the aid of a labelled diagram, the likely shape of the demand curve in this market structure. (b) (i) If a large US chocolate manufacturer entered the EU chocolate market, outline the possible economic impacts of greater competition in this market. (ii) Outline two factors which could make it difficult for this US chocolate manufacturer to enter the EU chocolate market. (c) Explain why small firms succeed in some markets while other markets are dominated by large firms. 3. (a) Explain the following terms in relation to the factor of production labour. (i) Participation rate (ii) Real wages (iii) Labour Productivity (iv) Derived demand (b) (i) Discuss the factors that impact on the supply of labour. (ii) Outline two challenges currently facing the Irish labour market and state one appropriate government policy response for each challenge identified. (c) Discuss reasons why different workers are paid different wage rates