Sunday, January 18, 2009

Unit 1: What's an inferior good in 2009?

An interesting article from the BBC about rising sales of inferior goods as the recession starts to bite

http://news.bbc.co.uk/1/hi/business/7824072.stm

a) Define an inferior good
b) What examples of inferior goods are suggested in the article?
c) When deciding whether something is an inferior good, what assumption is made?
d) What examples are given that this might not always be the case?

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