To what extent are complex meals an inferior good?

Introduction

1.1. Economic Background

Economic recession has had a serious negative impact on the economic system of Latvia. In 2009 Latvian authorities could non finance its budget shortage and had to borrow money ( wholly a‚¬7.5bn ) from foreign fiscal establishments, such as the IMF, the World Bank, the European Union, the Northern states and members of the EU[ 1 ]. These establishments have asked the Latvian authorities to use financial policies aimed at cut downing the budget shortage. The authorities of Latvia has chosen to use deflationary policies of cutting its outgo and raising revenue enhancements. For illustration, trusting to increase grosss, the authorities has raised the excise revenue enhancement of fuel by 8-9 % and 18 % between old ages 2007, 2008 and 2009 severally[ 2 ]. It besides raised the value added revenue enhancement from 18 % to 21 % for most goods and services ( except from 5 % to 10 % for imperativeness releases and medical specialty ) in 2009[ 3 ]and the single income revenue enhancement from 23 % to 26 % in 2010[ 4 ]. Thereby, as revenue enhancements are raised and wages in the populace sector have fallen by 21.5 %[ 5 ]due to cutting authorities outgo, consumers ‘ existent incomes have decreased. To accommodate to falling incomes, consumers have to pass less and alter their disbursement forms presuming that they do non hold adequate nest eggs to keep the old degree of ingestion.

I have besides felt the impact of falling household income as my pocket money has decreased. My brother has become unemployed due to the recession and I am cutting excess outgo, e.g. on cinema tickets and more expensive nutrient. In the past, during the lunch interruption I frequently visited bistros and fast-food eating houses where nutrient is somewhat more expensive than at the canteen of my school. Now I eat at school more than before and I normally choose complex repasts because they apparently are the best trade for the monetary value. Once, I about ne’er took them. Therefore, in this survey I will seek to research the consequence of falling income on the consumer pick of other pupils, i.e. if they are devouring more complex repasts as their incomes have decreased, because I have observed such tendency among my schoolmates. My research inquiry therefore is:

To what extent are complex repasts an inferior good at the canteen of Riga State Gymnasium No.1?

This is a really of import issue for the pupils with the lowest degree of income because a larger portion of their income is spent for necessities, e.g. nutrient and public conveyance. As they can non afford anything else every bit much as they possibly would wish, the pupils ‘ quality of life suffers. Meanwhile, I have developed a hypothesis to back up the construction of the drawn-out essay. It is based on personal observations that a autumn in income is accompanied with a rise in complex repast monetary value.

Complex repast is a Giffen inferior good because a rise in their monetary value and a autumn in pupils ‘ existent income consequences in a higher demand for complex repasts.

1.2. Canteen Background

The first lesson at Riga State Gymnasium No.1 starts at 8:20 but there are three 35 minute tiffin interruptions ; each for a different group of pupils. First, from 10:40 to 11:15 dine the 7th to 9th graders, approximately 312 pupils. Second, from 11:30 to 12:05 – the 10th to 11th graders, approximately 420 pupils. Finally, from 12:20 to 12:55 dine the 12th graders, approximately 210 pupils. The instructors are besides allowed to hold tiffin in the canteen at the same monetary values that the pupils do. However, instructors are non included in this research because their income is well larger than the one of pupils. Thus the instructors spend income in more assorted ways, doing them difficult to compare with pupils.

The pick of nutrients offered at the canteen is instead big. It includes different types of soups, chief classs ( battercakes, boiled murphies, rice, Polygonum fagopyrum, lasagna, pasta etc. , together with porc chops, meatballs or joints by pick ) with salad, sweets, pastries and drinks ( boiled fruit, juice, milk, kefir or yogurt ) . Meat merchandises cost significantly more than veggies but the extent to which one feels satiated varies between persons. Complex repasts normally include soup, a type of chief class with meat and a drink. The complex repast is different every twenty-four hours, albeit a specific package whose constituents can non be altered. The monetary value however is the same day-to-day. It does non fluctuate on a day-to-day or monthly footing but it tends to lift over clip – from semester to semester or between academic old ages.

However, the canteen is unfastened merely to pupils and instructors from 10:40 to 12:55. Visitors from exterior can merely come in the premises after 12:55. Furthermore, an understanding exists between the school and the canteen that the canteen must sell nutrient for lower monetary values to the pupils while having lower costs of leasing infinite in return. After 12:55 the nutrient monetary values can be changed.

It should be noted that sometimes in winter ( December to February ) , when it is strongly snowing or the temperature is good below 0A°C, go forthing the school during the tiffin interruption is prohibited by the school due to doing floors soiled with muddy snow. However, the canteen is still non allowed to raise monetary values charged from the pupils.

1.3. Methodology

In order to look into the hypothesis and reply the research inquiry, both primary and secondary informations will be used.

The primary informations consist of a study ( included in the appendix ) carried out by quota and chance sampling among 157 pupils who have studied at my school in twelvemonth 12 in the academic twelvemonth 2009/10 because merely they have experienced the monetary value alterations at my school get downing from 2007/08. The pupils analyzing in twelvemonth 9 were non included due to the trouble of roll uping informations from them in their tiffin interruption because it is assorted with 7th and 8th formers.

As I am a 12th class pupil myself, the analysis, rating and decisions are besides based on my personal experience and observations.

The secondary informations consist of studies from 2007/09 to the first semester of 2009/10 from my school ‘s canteen. The informations have been kindly provided by its staff for the interest of this research.

Figures provided by Central Statistical Bureau of Latvia and Bank of Latvia online sing unemployment, pay cuts in the populace sector, revenue enhancement and rising prices alterations are besides used to back up the grounds of falling consumers ‘ existent incomes and to advance clearcutness by mensurating figure alterations in existent non absolute footings.

The analysis in my drawn-out essay is performed utilizing microeconomic theoretical accounts that help in replying the research inquiry and back up the hypothesis. Specifically, the theoretical account of income snap will be used to set up the inferior good position of complex repasts. It will so be supported by monetary value snap of demand to analyze the handiness of replacements and ascertain whether complex repasts are Giffen goods. Budget lines and indifference curves will be used to picture how pupils spend their income on nutrient in general and complex repasts. The time-span of 2.5 academic old ages from 2007/08 till the first semester of 2009/10 will be covered because the same composing of pupils in a category is present for maximal three academic old ages.

Data Collection and Analysis

2.1. Income Elasticity

Students ‘ existent incomes determine demand. When pupils have more income, they demand more normal goods. When pupils have less income, they demand more inferior goods ( Items for which an addition in income consequences in a autumn in the sum bought[ 6 ]) . In our instance complex repasts perchance represent the inferior goods.

Income snap of demand ( IED ) measures the reactivity of demand to a given alteration in income. A positive IED indicates a normal good whereas a negative IED – an inferior good[ 7 ].

If some type of pupils ‘ outgo disappeared wholly, for illustration, no more direct conveyance outgo because their family gained a auto or the conveyance outgo was covered by person else, non the pupil, pupils ‘ nominal income would well diminish if their parents or defenders would deduct that sum from their kid ‘s pocket-money. However, their existent income could even lift if parents or defenders do non deduct pocket-money proportionately. Therefore, to neutralize this disagreement, it is assumed that pupils ‘ income has a direct correlativity with their parents or defenders ‘ income. So, pupils were asked to supply approximative family incomes per capita in the semesters researched.

The IED is determined utilizing primary informations gathered from pupils sing household income per capita and complex repasts bought per hebdomad between semesters. IED is calculated and shown in table 2.1-1. Secondary informations sing the sum of complex repasts sold per hebdomad were gathered from the canteen. In table 2.1-1 IEDp shows the value of IED when primary informations from pupils are used while IEDs represents secondary informations. Household income in computation is adjusted for rising prices in semester 2007/08 1st monetary value degree[ 8 ].

Table 2.1-1

Income Elasticity of Demand for Complex Meals Between Semesters

Semesters

IEDp

Improvised explosive device

2007/08 1st and 2007/08 2nd

11.720

14.158

2007/08 2nd and 2008/09 1st

-0.730

-0.405

2008/09 1st and 2008/09 2nd

-4.128

-3.074

2008/09 2nd and 2009/10 1st

-8.630

-18.245

Despite the difference in values for IEDp and IEDs, both retain the same tendencies back uping credibleness of primary informations. Except for semesters 2007/08 1st and 2007/08 2nd, the staying three IED exhibit inferior good features, i.e. negative IED. This supports the hypothesis to the extent that complex repasts appear inferior. However, while in semesters 2007/08 2nd and 2008/09 1st IED is inelastic, it is elastic from semesters 2008/09 1st to 2009/10 1st.

Table 2.1-2

Household Income per Capita and Quantity of Complex Meals Demanded per Week

Semesters

Household income per capita, LVL

Measure of complex repasts demanded per weekp

Measure of complex repasts demanded per hebdomads

2007/08 1st

417

82

549

2007/08 2nd

409

65

414

2008/09 1st

385

68

425

2008/09 2nd

338

117

634

2009/10 1st

332

137

887

Income Elasticity of Demand & lt ; 0, Semesters 2007/08 2nd and 2009/10 1st

385

68

338

405

332

137

0

65

117

Figure 2.1-1

Measure of complex repasts demanded

Household income per capita, LVL

Household income per capita kept falling from semester 2008/09 1st to 2008/09 2nd by 13.0 % or LVL 47 ( )[ 9 ]and from semester 2008/09 2nd to 2009/10 1st by 1.8 % or LVL 6, so, as IED is greater than one, measure of complex repasts demanded rose proportionately more than income by 53.0 % or 49 and 15.7 % or 20, utilizing primary informations as seen in figure 2.1-1. Such IED alterations can be explained by changing pupil penchants due to external factors, for illustration, outlooks and unemployment. As unemployment rose from 6.6 % to 9.4 % and from 11.2 % to 12.0 %[ 10 ]between these semesters, the figure of breadwinners ( along with income ) decreases. Due to outlooks of farther revenue enhancement and unemployment rises, families tend to salvage, explicating why measure of complex repasts demanded rises faster than income falls because disposable income falls proportionately more than entire income. Despite the 21.5 % salary decreases in public sector, families ‘ income per capita did non fall that much. This could be because of a larger proportion of pupil parents employed in the private sector.

Income Elasticity of Demand & gt ; 0, Semesters 2007/08 1st and 2007/08 2nd

65

82

409

Measure of complex repasts demanded

Household income per capita, LVL

417

0

Figure 2.1-2

From semester 2007/08 2nd to 2008/09 1st, demand for complex repasts is negatively inelastic because possibly some negative outlooks appeared. Unemployment increased from 4.3 % to 6.6 % but antecedently a autumn in employment had non happened. Thereby, complex repasts were demanded by 4.6 % or 3 more while income fell by 6.0 % or 17. It is possible that pupil gustatory sensations were seting from those in semesters 2007/08 1st and 2007/08 2nd from short-run to long-run equilibrium. This would explicate the high positive snap in 2007/08 depicted in figure 2.1-2. Furthermore, this is the first academic twelvemonth for pupils in their several signifiers and about 47 % of them are fledglings. They could hold a inclination to dine in a familiar environment, i.e. the school ‘s canteen while non-newcomers are better acquainted with catering topographic points outside school. Therefore fledglings might take complex repasts, less cognizant of their features and possible options. However, over semesters as everyone ‘s income psychiatrists, even non-newcomers choose to dine at school and order complex repasts because they are comparatively cheaper than nutrient elsewhere. Of class, this pick is besides promoted by income alterations, non merely permutation.

The canteen could profit from negative IED by bring forthing more complex repasts and therefore confronting lower costs of production because of economic systems of graduated table. Students would confront lower monetary values if canteen chooses to reflect costs in monetary values. However, this is merely in the short-run while the economic system has entered a recession. When the economic system recovers, household income should lift and complex repast measure demanded autumn. Thus complex repast composed disbursement in entire outgo would besides fall. Nevertheless, with a different composing of pupils their short-run economic behavior might differ.

2.2. Price Elasticity of Demand

Price snap of demand ( PED ) measures the reactivity of demand to a given alteration in monetary value. If the figure is greater than one so the merchandise is described as elastic or demand is sensitive to monetary value. This implies that the alteration in the demand will be proportionally larger than the alteration in monetary value. However, if the value is less than one so the good has an inelastic demand curve.[ 11 ]

The jurisprudence of demand provinces that as a monetary value for a merchandise rises, its demand falls[ 12 ]. Therefore the demand for a normal good is negatively sloped. So if monetary value alteration is positive while measure demanded negative or vice-versa, PED will ever be a negative value.

However, if the good is a Giffen good, the jurisprudence of demand is violated as measure demanded falls when monetary value falls and so the demand is upward inclining. Therefore, for Giffen goods PED is positive.[ 13 ]Increase in income consequences in a autumn in demand for the good. A Giffen good is an utmost signifier of inferior good. It arises because the income consequence is opposite to and outweighs the permutation consequence. It will therefore be examined whether complex repasts exhibit the features of Giffen goods because they appear inferior as explained in subdivision 2.1. and their monetary value and measure demanded has overall risen. However, it must be examined by what proportions. PED is shown in table 2.2-1 once more for primary and secondary informations values.

Table 2.2-1

Price Elasticity of Demand for Complex Meals Between Semesters

Semesters

PEDp

PEDs

2007/08 1st and 2007/08 2nd

-1.272

-1.537

2007/08 2nd and 2008/09 1st

0.203

0.113

2008/09 1st and 2008/09 2nd

8.211

6.113

2008/09 2nd and 2009/10 1st

1.339

2.830

Similarly to IED, PED values differ between primary and secondary beginnings. However, the same tendencies can be discernible. Apart from semester 2007/08 1st to 2007/08 2nd, semesters 2007/08 2nd to 2009/10 1st have positive PED, refering to the features of Giffen goods. Although complex repasts do non do a considerable proportion of families ‘ income, they do of an single pupil ‘s income. Therefore it is executable that, given complex repasts ‘ inferior good features, measure of complex repasts demanded rises along with their monetary value. The monetary values of complex repasts and their measures demanded are shown in table 2.2-2.

Table 2.2-2

Monetary value and Quantity of Complex Meals Demanded per Week

Semesters

Monetary value of a individual complex repast, LVL

Measure of complex repasts demanded per weekp

Measure of complex repasts demanded per hebdomads

2007/08 1st

1.00

82

549

2007/08 2nd

1.20

65

414

2008/09 1st

1.50

68

425

2008/09 2nd

1.60

117

634

2009/10 1st

1.80

137

887

82

Calciferol

1.00

Figure 2.2-1

Monetary value of a individual complex repast, LVL

1.20

Measure of complex repasts demanded per weekp

65

0

Price Elasticity of Demand & lt ; 0, Semesters 2007/08 1st and 2007/08 2nd

The PEDp of -1.272 in figure 2.2-1 reflects complex repasts as if they were normal goods as monetary value rose by 18.2 % and measure demanded decreased proportionately more by 23.1 % . The composing of pupils who dine at school contributes to this as many fledglings could hold chosen to dine at school and thereby could hold preferred something better, calculating that monetary value rise is non deserving increasing ingestion. The recession had non yet started and it was possible.

Price Elasticity of Demand & gt ; 0, Semesters 2007/08 2nd and 2008/09 1st

65

Calciferol

68

1.20

Figure 2.2-2

Monetary value of a individual complex repast, LVL

1.50

Measure of complex repasts demanded per weekp

0

In figure 2.2-2 PEDp is already positively inelastic at 0.203 because pupils may hold acquired gustatory sensation or wonts for holding complex repasts and consequently devour 4.5 % more of them despite the 22.2 % addition in monetary value because they are still apparently more favorable than other types of nutrient available. Impact of the recession can be felt as parents possibly get down to salvage, doing pupils ‘ incomes shrink and advancing the ingestion of complex repasts.

117

0

1.80

Calciferol

137

1.60

Figure 2.2-4

Monetary value of a individual complex repast, LVL

Measure of complex repasts demanded per weekp

Price Elasticity of Demand & gt ; 0, Semesters 2008/09 2nd and 2009/10 1st

Calciferol

0

117

1.50

Figure 2.2-3

Monetary value of a individual complex repast, LVL

1.60

Measure of complex repasts demanded per weekp

68

Price Elasticity of Demand & gt ; 0, Semesters 2008/09 1st and 2008/09 2nd

Figures 2.2-3 and 2.2-4 demonstrate elastic positive PEDp of 8.211 and 1.339 besides due to the fact that the same pupils have studied at school for more than one academic twelvemonth. Thus their penchants adjust to long-run tendencies as pupils become more intelligent of the repast offers inside and outside school. As this happens, from pupil position there are more replacements for complex repasts, so their PED becomes more elastic compared to calculate 2.2-1. However, between both braces of semesters, PED gets more inelastic as rewards quickly decline during summer pay cuts. So, a complex repast monetary value rise of 6.5 % and 11.8 % is accompanied by an increased measure demanded of 53.0 % and 15.7 % severally. Likewise, complex repasts are so more sensitive to the monetary value alterations of replacements. However, complex repasts remain Giffen goods because they have few replacements near to their monetary value class. This supports the hypothesis more strongly as Giffen goods are inferior by definition.

The canteen can take advantage of cognizing PED for complex repasts. Theoretically, it could utilize positive PED information to raise monetary value and experience measure demanded for complex repasts to lift together with entire gross. However, as they do so, pupils can exchange off from complex repasts to other nutrient, therefore non accomplishing the expected consequence. Students with the lowest degree of income could besides exchange their dining forms from purchasing ready tiffin to taking it from place or non holding it at all. Despite complex repast monetary value rises and student income shrinkage, more complex repasts are still acquiring demanded. Therefore in the following subdivision indifference curves will measure how complex repasts relate to other types of nutrient.

2.3. Indifference Curves and Budget Lines

Indifference curves show combinations of goods that give the same degree of satisfaction. Satisfaction is maximised at the point where an indifference curve is tangent to a budget line. Here the incline of indifference curve is equal to the incline of budget line, which measures the chance cost of one good in footings of the other. A budget restraint ( line ) shows what the consumer could purchase with a given income. A consumer optimises by seeking to acquire to the highest indifference curve that is available with a given budget restraint. The response to a monetary value alteration can be decomposed into an income and a permutation consequence.[ 14 ]If one of the monetary values alterations, so the budget line will swivel and if income alterations it will switch.[ 15 ]

Previously demand for all pupils together was analysed. However, indifference curves and budget lines require the analysis of a individual pupil. Therefore the average sum of complex repasts per pupil in a hebdomad and their mean existent budget spent on tiffin per hebdomad will be used. If measure of complex repasts per hebdomad is on ten axis, so y axis represents money spent on all other tiffin. The average measure of complex repasts demanded per hebdomad and the staying budget in semesters is shown in table 2.3-1.

Table 2.3-1

Consumption Structure in Lunch Budget per Week

Semesters

Mean measure of complex repasts demanded per hebdomad for each pupil

Money in tiffin budget spent on other nutrient, LVL

Lunch budget per hebdomad, LVL

2007/08 1st

1.000

8.62

9.62

2007/08 2nd

0.844

8.53

9.54

2008/09 1st

1.000

7.73

9.23

2008/09 2nd

1.463

6.37

8.71

2009/10 1st

2.108

4.68

8.47

As antecedently noted in subdivisions 4.1. and 4.2. , complex repast between semesters 2007/08 1st and 2007/08 2nd showed the features of a normal good which the indifference curve in figure 4.3.1 depicts. Initial budget line pivots clockwise because the monetary value of a individual complex repast rises from LVL 1.00 LVL to LVL 1.20. As tiffin budget line displacements from LVL 9.62 to LVL 9.54, the average measure of complex repasts demanded per hebdomad lessenings from 1.000 to 0.844. Income consequence is positive while permutation consequence is negative because shriveling income and rising monetary value are followed by falling measure demanded. Complex repasts were non considered necessities compared to other nutrient because income was higher and better tiffin was low-cost, therefore the normal good features.

Indifference curves, Semesters 2007/08 1st and 2007/08 2nd

Q1 = 1.000

Q3 = 0.844

Q4 = 9.620

Q5 = 8.017

Q6 = 7.950

Q1

Q2

Q3

Q6

Money spent on other tiffin, LVL

Q5

8.62

0

9.54

8.53

Q4

Mean measure of complex repasts demanded per hebdomad

9.62

I1

I2

Substitution consequence

Income consequence

Figure 2.3-1

Here and further it is assumed that a pupil receives maximal satisfaction from their chosen ingestion construction for the given monetary value and their budget.

Figure 2.3-2

Indifference curves, Semesters 2007/08 2nd and 2008/09 1st

Q1 = 0.844

Q3 = 1.000

Q4 = 7.692

Q5 = 6.360

Q6 = 6.153

Q1

Q5

Mean measure of complex repasts demanded per hebdomad

Q3

Q6

Money spent on other tiffin, LVL

Q2

7.73

0

8.53

9.23

9.54

I1

I2

Substitution consequence

Income consequence

Q4

From semesters 2007/08 2nd to 2008/09 1st complex repasts showed the features of Giffen goods. As initial budget line pivots clockwise, complex repast monetary value rises from LVL 1.20 to LVL 1.50. Then it shifts leftwards because tiffin budget beads from LVL 9.54 to LVL 9.23. Here income consequence is opposite to and greater than permutation consequence, doing measure demanded rise from 0.844 to 1.000.

Figure 2.3-3

Indifference curve, Semesters 2007/08 2nd and 2008/09 1st

Q1 = 1.000

Q3 = 1.463

Q4 = 5.807

Q5 = 5.769

Q6 = 5.444

Q1

Q5

Mean measure of complex repasts demanded per hebdomad

Q3

Q6

Money spent on other tiffin, LVL

Q2

6.37

0

7.73

8.71

9.23

I1

I2

Substitution consequence

Income consequence

Q4

Figure 2.3-3 is similar to calculate 2.2-2 in footings of permutation and income effects because complex repasts retained Giffen good features, i.e. measure of complex repasts demanded per hebdomad rose from 0.844 to 1.000. As tiffin budget psychiatrists form LVL 9.23 to LVL 8.71, budget line and indifference curve displacements leftwards.

Indifference curve, Semesters 2007/08 2nd and 2008/09 1st

Q1 = 1.463

Q3 = 2.108

Q4 = 5.294

Q5 = 4.839

Q6 = 4.706

Q5

Figure 2.3-4

Q1

Q4

Mean measure of complex repasts demanded per hebdomad

Q3

Q6

Money spent on other tiffin, LVL

Q2

4.68

0

6.37

8.47

8.71

I2

Income consequence

Substitution consequence

I1

Figure 2.3-4 is similar to both figure 2.3-2 and figure 2.3-3. In fact, it would be possible to picture them all in one diagram as continuously clockwise pivoting and leftwards switching budget lines and indifference curves because complex repasts remain Giffen goods but it is non done to do state of affairs better perceivable. Measure demanded kept turning from 0.844 to 2.108 with their monetary value bit by bit lifting from LVL 1.20 to LVL 1.80 and nutrient budget shrinkage from LVL 9.54 to LVL 8.47. The per centum of complex repast outgo in tiffin budget rose from 10.4 % in 2007/08 1st to 44.8 % in 2009/10 1st, taging a well turning function in pupils ‘ diet and as an income consequence determiner. Possibly complex repasts appeared as normal goods at first because of low outgo per centum in tiffin budget.

I1

Decisions

3.1. Research Question and Hypothesis

By executing an analysis of the obtained primary and secondary informations and replying the research inquiry “ to what extent are complex repasts an inferior good at the canteen of Riga State Gymnasium No.1? “ , it can be concluded that the hypothesis that complex repasts are inferior Giffen goods was proved valid from semester 2007/08 2nd to 2009/10 1st as so IED was negative at -3.430 while PED was positive at 1.782.

However, comparing the semesters 2007/08 1st and 2007/08 2nd revealed complex repasts as normal goods because their monetary value rose by 18.2 % and measure demanded fell by 23.1 % . Furthermore, income consequence was positive at 11.720. However, as the recession started, unemployment continuously rose and income shrank by 22.7 % . Therefore informations between the last four semesters indicated that pupils now perceived complex repasts as inferior Giffen goods because measure demanded rose by 71.3 % despite 40 % monetary value addition. In entire nutrient disbursement, complex repast composed proportion climbed from 10.4 % in semester 2007/08 1st to 44.8 % in semester 2009/10 1st, intending that farther rises in monetary value would perchance increase measure demanded due to miss of close replacements able to give the same satisfaction in this monetary value class.

3.2. Restrictions

Apart from pupils, instructors besides dine at the canteen and are included in the secondary informations but they are neglected in the analysis due to their comparatively low sum and adversity to mensurate their big assortment of disbursement forms.

Trouble to mensurate the extent to which the demand for complex repasts has risen due to factors non influenced by the school canteen, e.g. the gustatory sensations of pupils, monetary values of repasts outside the school and the sum of pupils who take tiffin with them from place.

As I am personally acquainted with pupils from twelvemonth 12, some of them could non hold included precise information in the study due to concern of me being able to screen them out.

3.3. Suggestions

Year 9 pupils could hold besides been surveyed because their disbursement forms could differ from 12th-graders. However, their economic behavior could be wholly irrational if the value of money is slightly vague to them. Furthermore, it might be the instance that parents tend to salvage less on their kids while they are immature to supply them the best support they can. This could possibly be farther studied.

Separating income and permutation consequence would be utile by cut downing the clip covered by the research or spliting it into smaller periods to contradict the consequence of altering monetary values or income from each other every bit much as possible and to do primary informations more dependable.

To pull more precise indifference curves, pupils could be enquired how many complex repasts they would purchase if their monetary value was increased by a certain per centum with income held changeless or vice-versa to acquire specific points on the indifference curve and to build a demand map.

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& lt ; hypertext transfer protocol: //www.likumi.lv/doc.php? id=202351 & gt ; Retrieved: 03/01/2010

Laws of the Republic of Latvia. Amendments of Law Sing Value Added Tax.

& lt ; hypertext transfer protocol: //www.likumi.lv/doc.php? id=185630 & gt ; Retrieved: 03/01/2010