The financial crisis has, according to research from the Institute of Grocery Distribution (IGD), begun to lead to a fundamental change in shopping habits. People are now more ready to take packed lunches to work, walk rather than drive and even grow their own food to a greater extent than for many years.
Cash-strapped shoppers in search of Good Life Times Online (14/10/08)
|With reference to the article, suggest products for which demand is likely to increase during an economic downturn.
|Are all the products you identified in question 1 inferior products?
|With reference to the article, suggest products for which demand is likely to decrease significantly during an economic downturn.
|Comment on the likely value of the income elasticity of demand for each of the products you have identified in questions 1 and 2.