Saturday, 23 October 2010

Income elasticity of demand for coffee

A really interesting video clip from the BBC

http://news.bbc.co.uk/1/hi/business/8334993.stm

a) Explain what income elasticity of demand measures and state the formula
b) Given what is said in the video, would it be true to say that coffee bought on the high street is an inferior good?

No comments:

Post a Comment