RI 2023 H2 Promotion Examination - Paper 1

9570/01/Promo/Y5/2023 © RI 2023 [Turn over RAFFLES INSTITUTION 2023 YEAR 5 PROMOTION EXAMINATION Higher 2 ECONOMICS 9570/01 Paper 1 Case Study September 2023 1 hour 15 minutes Additional Materials: Answer Paper READ THESE INSTRUCTIONS FIRST Write your name, index number and civics class on all the work you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for diagrams, graphs or rough working. Do not use paper clips, highlighters, glue or correction fluid. Answer all questions. The number of marks is given in brackets [ ] at the end of each question or part question. Attach this cover sheet to answers for Paper 1. Name: ______________________ Civics Class: ________________ Question Marks Economics Tutor: ____________ 1 /30 This document consists of 4 printed pages and 1 blank page. H

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3 9570/01/Promo/Y5/2023 © RI 2023 [Turn over Question 1: The rise of the cosmetics industry and its impact Skincare, haircare, make-up, perfumes, toiletries and deodorants, and oral cosmetics are the main product categories of the cosmetics market. The cosmetics market has gained huge popularity among the young generation, owing to the rise in beauty consciousness among people to build up self-confidence and one’s esteem. Table 1: Breakdown of the cosmetics market worldwide from 2011 to 2022, by product category Source from: https://www.statista.com/statistics/243967/breakdown-of-the-cosmetic-market-worldwide-by- product-category/ Extract 1: Impact of COVID-19 on the cosmetics market During the COVID-19 pandemic, lockdowns and the work from home culture have significantly reduced social interactions and thus significantly decrease d the use of cosmetics compared with pre-pandemic levels. At the same time, due to supply chain disruptions , the increase in raw materials and shipping prices ha ve led to some cosmetic brands needing to pass along those cost increases to consumers in order to maintain their profit margins. Yet, India’s makeup brand, Aether Beauty and Vapour Beauty were among some firms that shut down operations during the pandemic citing reasons such as lack of accumulated profits and stiff competition. As a result of the pandemic, consumers care more about sustainability, and the use of safe and nontoxic ingredients in cosmetics, which are deemed to cause less side -effects. Cosmetics made from natural ingredients have thus seen a rapid rise in popularity. With the rise in urbanization and growth of the middle -class consumers in developed and developing countries, coupled with the complete relaxation of COVID -19 restrictions in many

4 9570/01/Promo/Y5/2023 © RI 2023 [Turn over countries, cosmetic manufacturers have begun offering alternative cosmetic products such as personalised products, and ‘Maskne’ treatments to manage