Blog summary

tutor2u econs blog, tag "AS Micro".

This is a pretty big part of the blog: many things can be reffered to as AS Micro. Microeconomics deals with the processes of consumption and production on the level of households and firms.

I've read 4-5 first pages..

- this post is talking abou classification of luxury cars according to demand elasticity. they were thought to be veblen goods (when price goes up, demand goes up as well), however, it is no truth any longer as it is proved in this the Times article. then tutor2u blog discusses the impact that the recession has on luxury cars companies' profits.

- moving on with types of goods, this post discusses an increased demand for inferior goods. inferior goods are those goods that have a negative relationship between quantity demanded and income. in other words, people buy those goods when their real income is low. however, it doesn't mean that those goods are poor quality, they just have more competitive and popular substitutes.

- this post describes a Wispa phenomenon - it was launched 25 years ago and left the market at the beginning of its third decade. people were saying that Wispa had passed all the stages of the product life cycle and now it was in history. however, the power of technology and consumer demand successfully brought it back. actually its producers who decide on marketing and development of a product, but in this case the consumers initiated Wispa's return - they used Facebook to show Cadbury that they want Wispa back. and they didn't lie - the sales of Wispa in 2007 were incredibly high. Cadbury even entered into a joint venture with McDonald’s to sell a Wispa McFlurry, which also brought profits. yay for chocolates!