Unit 1: Elasticity in the tablet computer market

An interesting clip from the BBC on competition in the tablet computer market

http://www.bbc.co.uk/news/technology-11665362

a) Explain why all of these products would not have the same PED value
b) Which would have the most inelasic demand? Why?
c) Would the income elasticity of demand for these products be positive or negative? Why?
d) How could you use the concept of cross ED in this market?

Unit 1: Increasing airport tax

Look at the table in this Ch4 article

http://www.channel4.com/news/ba-boss-airport-tax-will-damage-uk-economy

a) Suggest 2 reasons why the government has increased these taxes
b) Using the concept of PED, explain why there is such a difference in the increases

Shrews need to think more flexibly!

http://news.bbc.co.uk/sport1/hi/football/teams/s/shrewsbury/9139736.stm

Assuming the role of the FA adviser, alay the fears of Shrewsbury that they will automatically worse of with cheaper prices for these tickets.