Thursday, March 29, 2012

Unit 1: The rising price of coffee

Great clip from Aljazeera

http://www.youtube.com/watch?feature=player_embedded&v=6iqNEiAI1lY

a) Using a S&D diagram, explain the paid rise in the price of coffee. Think how you will draw both the D and S curves; do you think D and/or S will be price elastic or inelastic?

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