Thursday, January 03, 2013

Unit 1: Allocative efficiency in Cambridge

As the popularity of going to the pub continues to decline and pubs close, it's intersting to see the new uses they are put to. Examples in Cambridge include pubs demolished and conversions to restaurants and estate agents. This latest proposal is for conversion to student flats

http://www.cambridge-news.co.uk/News/Future-of-two-more-pubs-hangs-in-balance-02012013.htm

a) Why is this an example of allocative efficiency in the market?

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