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A perfectly competitive market

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Evaluating demand-side reactions to the financial crisis

Supermarkets’ market power

‘Stack ’em high, and sell ’em low’

Supermarkets’ significant market power enables them to drive down the price of goods offered to consumers. Steven Proud explores how supermarkets have developed their market power and the effects on consumers and producers

Commentary on the questions in this article are available online at www.hoddereducation.co.uk/economicreviewextras

It is often claimed that Napoleon described the UK as a nation of shopkeepers. Families would purchase their groceries from a range of stores — meat from a butcher, vegetables from a greengrocer, and so on. However, throughout the twentieth century, consumers’ shopping habits changed and food shopping became dominated by large chains of supermarkets, such as Tesco, Sainsbury’s, Asda and Morrisons.

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Previous

A perfectly competitive market

Next

Evaluating demand-side reactions to the financial crisis

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