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Assignment | Economic state of England

   

Added on  2022-10-04

7 Pages1216 Words12 Views
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Economics Assignment
Name of the student
Name of the University
Author note

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Table of Contents
Introduction................................................................................................................................3
Economic state of England.........................................................................................................3
Strategies to make the demand of biscuits of England more inelastic.......................................3
Conclusion..................................................................................................................................6
Reference List............................................................................................................................7

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Introduction
As per the economic principle, the demand and the purchasing of the goods would be
changed very less compared to the changing of the price level of that item, this characteristic
is referred as the inelastic demand for a particular product. More specifically, it can be stated
that in case of inelastic demand, the changing of price level would lead to the changes of the
small percentage of the demand for the goods. This paper would shed the lights on the
recommendation for increasing the demand of biscuits more inelastic.
Economic state of England
The economy of England is highly developed, which is in the sixth position as per the
measurement of gross GDP (Jawad et al., 2018). On the other hand, the purchasing power
parity of the nation is also at the higher position; the country is in ninth place as per the
measurement of this macroeconomic indicator. It has a clear indication that the consumption
expenditure of the economy is also high and hence, the residents of England are eligible to
afford the price of the goods. However, it can be argued that the affordability of the price
level of the products is not only dependent upon the income statement of the residents of
England, but also depend upon the demand for the purchasing of goods.
Strategies to make the demand of biscuits of England more inelastic
As per the statistical report, the sales of biscuits are chiefly driven by the supermarkets,
bakery retailers and wholesalers across the country of England. In addition, the UK market
research shows that the specific industry is capable to earn approximately 36% revenue to the
country’s GDP in 2018 (IBIS World, 2019). It is noted that biscuits are normal goods and the
people of the country to have it with tea or coffee or in their evening or morning snacks.
However, if the price of the goods would be increased much, then the people feel reluctant to
have biscuits and would like to replace their preferences with the purchasing of other
substituted goods such as cookies, pastries etc.

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