Monday, October 27, 2008

Poundshops and Inflation

Here's a good article about poundshops in Britain and how they are affected by inflation.

1. What type of goods do such shops deal in
(a) normal goods?
(b) inferior goods?
(c) veblen goods?
(d) giffen goods?

2. What kind of income elasticity of demand figure would you expect them to have?

The answers tomorrow.

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