Tuesday, March 27, 2012

Unit 1: Is the demand for postage stamps price elastic or inelastic?

We'll soon find out as Royal Mail hikes its prices

http://news.sky.com/home/business/article/16197145 sky news video
http://www.bbc.co.uk/news/business-17522500 BBC article
http://www.bbc.co.uk/news/business-17530049 BBC video
http://www.bbc.co.uk/news/business-17522683 BBC interview

a) Why has Royal mail decided to increase its prices?
b) What does that tell you about their perception of the PED for stamps?
c) Using the list of factors that determine whether D is elastic/inelastic, explain why this might, and might not, be the case

1 comment:

EddieEd said...


Really interesting stamps ‘posted’ on here. I hope that they got there with 1st class delivery, whatever that may cost in their native country or at whatever moment in time. If you are ready to venture forth here is another stamp collector’s paradise!