Asda pulls out of Black Friday a year on from shopper scuffle over cut-price TVs
Black Friday, originally an American tradition, sees retailers offering massive discounts on products in an attempt to persuade shoppers to spend money in the run-up to Christmas.
Footage from Asda in Wembley, north west London, last year showed security staff struggling to contain a crowd of hoppers grappling for cut-price televisions.
Some customers had to be separated as the sale sparked furious exchanges, while two women were seen wrestling over a TV.
Evening Standard
Q1. State the law of demand.
The higher the price of a good, the smaller its quantity demanded,
vice versa, (the lower the price of a good, the greater its quantity demanded, )
other factors being constant.
Q2. Explain whether the law of demand illustrated from the above case.
Yes.
In the Black Friday, there is a big sales with price cut, the consumers are willing to buy more. (quantity demanded).
Q3.
'In a big sales, the sellers must earn more.'
Explain whether the above statement must be correct.
NO
In a big sales, the price decreases and quantity transacted increase. However, if the demand is inelastic, the percent increase in quantity transacted will be smaller than the percent decrease in price. The seller's total revenue will decreases.