In recent years, I do not know exactly when it happened, the price of a Freddo (bitesize chocolate a similar size to these revision bites...mmmm...) increased from it's original 10p to 17p!
The Chocolate Paradox is so: Supposedly "pic'n'mix" chocolate increasing to 170% of it's original price. Do I buy 10 bars and become 70p less rich? Do I switch brands? So my outrage has overcome my "brand loyalty" for my favourite chocolate?
The demise of Woolies seems to have led to chaos. Inflation is the average rise of prices of goods and services in an economy. It is one of four macroeconomic indicators used by the Bank of England to determine interest rates. The CPI or Consumer Price Index is the measure of inflation used by the UK government. The four macroeconomic indicators are crucial in the macro modules. Learn them well, and apply them to each and every essay question you get given.
The Macroeconomic Indicators ---> In red because they are THAT important!
1) CPI - inflation.
2) GDP - economic growth
3) Unemployment/employment levels
4) Trade balance
I also googled "price inflation Cadburys" to see whether there were any professional minds who could shed some light on the subject, and came up with this neat little article
http://uk.finance.yahoo.com/news/Kraft-warns-inflation-ftimes-2240818805.html?x=0
, which incorporates:
1) Takeovers, mergers and acquisitions. *Definitions to research: Vertical & Horizontal integration* Learn them!
2) Price inflation. "Average rise in the level of prices of goods and services."
3) Economies of scale - the benefits from being larger - Kraft and Cadbury profit margins rise by more than they would have done otherwise.
4) We could go on, I'm leaving this bit to you: Brainstorm away!
I guess all this leads us to http://www.facebook.com/pages/When-I-was-your-age-Freddos-were-only-10p/165603621246?v=info. and general public outrage. I present you the Chocolate Paradox.
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