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    I thought I had finally got the answer to this question, but now ive managed to confuse myself.

    Could someone help me with this microeconomics question:

    Which would you expect to flucutate more over time: the price of gold or the price of eggs? Why?

    Thanx

    Please reply quickly as its urgent - may mean I have to change all my work!
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    The price of eggs, there can be health scares on the safety of eggs, diseases in chickens, changing opinions on diets (Atkins diet probably increased demand), but with gold it will always be the same. These factors affect demand, so by shifting the demand curve they will change the price.
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    Well i thought it was eggs too because the demand is price elastic so producers need to change prices significantly to affect demand

    but some ppl i know are saying it gold esp becuase the price of gold flucutates a lot - although its demand price elastic and so ud assume that prices changes would be relatively small - maybe because its a luxury good and a form of investment??

    - do u think theoretically it should be eggs?
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    Hmm, I see what you mean.

    Gold is an investment like you said, so when people buy it they are probably doing so to sell it later on and make a profit. While eggs are just bought to eat.

    I'm not sure anymore... :confused:
 
 
 
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