Food products that show a fall in demand when incomes go up, are referred to as inferior goods. The example of an inferior good giving in my textbook is bread, and in Dutch textbooks you’ll often find potatoes as an example of inferior goods. I would not label bread, and potatoes as inferior.
Read more
One of the things I like about my textbook, is that it treats advertising as a separate influence on demand. In Dutch textbooks this is often raked up with other influences on taste. The author of my textbook even takes it one step further, by pointing out, in the chapter on price elasticity, that, in theory, you could calculate elasticity for anything that influences demand. So, I figured, this includes advertising. Therefore I did some research on advertising elasticity.
Read more