this is an IGCSE question, please answer if you are familiar with the system.
give a detailed account and explanation please.
here's the exact question :
Explain why different income groups might have different pattern of spending and saving.
simplicitus
Favorite Answer
1. I'm not here to do your homework for you. I'm here to help you understand enough to do it yourself. Of what use to you or me to have you copy my answer?
2. Think about it:
A. Who tends to earn more, kids just out of school or older people? Which group are more likely to be parents and so spend money on:
- larger homes
- education
- toys
etc.
B. Who tends to save more and spend less of their income, the very rich or the very poor?
3. Think about the various types of goods you've learned about: normal vs. inferior vs. superior; Giffen good, etc.
http://en.wikipedia.org/wiki/Giffen_good
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