Friday, 28 March 2008

Inferior Goods


Holiday camps are an excellent example of inferior goods. As consumers' incomes rise, so does their ability to fly abroad; the plummeting price of air fares also weakens demand. Thusly, there is a negative income elasticity of demand for holiday camps.

So, all hail Graham Parr, who has just bought Pontin's and hopes to revive their fortunes

BBC NEWS | Business | Boss buys Pontin's holiday camps

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