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The news from Maccas was … good news for shareholders!
Anyway, this isn’t a hindsight post.
The news on Monday:
Why could this be good news? Well, its all about ‘inferior goods’.
No judgement! … Inferior goods are not necessarily of lower quality; the term simply refers to the negative relationship between income and demand.
An inferior good is a type of good for which demand decreases as consumer income rises, and conversely, demand increases as consumer income falls. This behaviour is contrary to that of normal goods, where demand typically increases with rising incomes.
The classic examples of inferior goods include:
And … 4 … Maccas?
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OK, you got me. This is a bit of a tongue in cheek post. Still, food (sry, not sry) for thought.
This article was written by Eamonn Sheridan at www.forexlive.com.
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