Saturday, September 06, 2008

Unit 1: Falling disposable incomes and the effect on demand for cars and budget hotels

3 articles from the BBC showing the effect on the demand for cars and budget hotels of falling incomes in the UK

http://news.bbc.co.uk/1/hi/business/7597387.stm Premier Inns
http://news.bbc.co.uk/1/hi/business/7599681.stm Bentley cars
http://news.bbc.co.uk/1/hi/business/7597954.stm New car sales

Use the concepts of normal/inferior goods to explain
a) The change in demand for Premier Inn rooms
b) The change in demand for Bentley cars
c) The change in demand for different types of cars. How does the idea of Complements also explain this change?

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