Friday, March 26, 2010

Is rise in sugar prices good for fat people?

What is a giffen goods really?

Is it only bread buns sold to unskilled Afro- American workers by the Democrats in 1910? The economists should move on.

Rise is sugar price might seem like people will reduce its intake, but thats when the giffin's law comes in. Since price of sugar rises, people just might substitue sugar to other products they cannot really afford now. Then the elasticity of demand for sugar becomes backward sloping.

Everyone needs sugar in their life. They need it more, when its costly.

No comments:

Post a Comment