Th2.1: Unemployment Impacts on Consumers

Question 1

Why do consumers in areas of high unemployment lose out?

Answer 1

local shopping centres don’t offer the same range of shops as low employment areas - less choice and perhaps worse quality of goods

Question 2

How do unemployed consumers lose out?

Answer 2

less available to spend

Question 3

What might firms do in order to increase demand for their product however?

Answer 3

lower prices and put on sales