Wednesday, June 04, 2008

Unit 1: The 2p sausage!

The BBC reports ASDA selling sausages for 2p each

http://news.bbc.co.uk/1/hi/uk/7434464.stm

a) What is the economics behind ASDA selling sausages for 16p a pack?
b) As ASDA are launching this line as the economy goes into an economic downturn, what sort of good does this suggest 2p sausages are?
c) Use economic analysis to explain what sort of sauasages in ASDA might see a decline in sales due to the economic downturn and the launch of the 16p pack

No comments: