A-level ECONOMICS Paper 3 Economic Principles and Issues

A-level ECONOMICS Paper 3 Economic Principles and Issues Insert DO NOT WRITE ANY ANSWERS IN THIS INSERT. YOU MUST ANSWER THE QUESTIONS IN THE ANSWER BOOKLET PROVIDED. The commercial aircraft manufacturing industry There are no sources printed on this page Extract A: The structure of the commercial aircraft manufacturing industry The commercial aircraft industry manufactures aeroplanes to carry passengers and freight. Since 2000, air traffic has grown by 240% and, in 2019, sales of commercial aircraft were worth $243.6 billion. The growth in the industry has been driven by the growth in household incomes and leisure time. Before the pandemic, the high income elasticity of demand for passenger and freight transport meant that the demand for these services, and hence commercial aircraft, grew 5 more rapidly than the rate of growth of world GDP. It is expected that once the world economy recovers from the economic shock caused by the pandemic, the growth of the industry will resume.