Unit 7 9 Marker Case

Question 1

Analyse how a period of economic growth might lead to an increase in the sales of takeaway coffee
First

Answer 1

Takeaway coffee is relatively expensive and for some people, seen as a luxury. A rise in incomes/increase in job security will therefore see an increase in the sales of luxury products, such as takeaway coffee, as opposed to drinking instant coffee which may be seen as an inferior good

Question 2

Second

Answer 2

An increase in economic growth/GDP will lead to an increase in employment levels resulting in a general rise in income levels; it will also lead to increased job security, giving people increased confidence to spend on non-essential goods