Economics class video: Is luxury fashion resale losing some of its sparkle?
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Specification:
Externalities, income elasticity of demand and market failure
Click to watch the short video below and then answer the questions:
Explain the concept of income elasticity of demand and explain what YED figure you would expect for a luxury fashion resale item
Draw a positive externalities of consumption diagram for second hand clothes.
Explain what a ‘Veblen good’ is and discuss whether goods in a resale market can ever be defined as such
Using the information in the video, explain how there could be market failure within the luxury fashion resale market
Gavin Simpson and Pete Clift, Economics In Ten podcast
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