TIME — Nutella Riots After Price Drop

 

A few supermarkets in France decided to cut the price of Nutella (an extremely popular item throughout Europe) by 70% and customers responded in droves to scoop up the heavily discounted staple. Police were called to various markets as customers fought to get the remaining jars. Not only is this a great example for demand shifts, but it’s an even better topic of elasticity!

2 thoughts on “TIME — Nutella Riots After Price Drop

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  1. Gonna use this clip in my elasticity lecture tomorrow! Thank being said, I don’t believe this is an example of a demand shift. It’s law of demand + elasticity. The price of nutella falls and quantity demanded skyrockets, just a movement along the curve!

  2. However, since many people consume Nutella every day in France and since unopened Nutella keeps for a long time, these consumers may be anticipating a future price increase (a return to normal prices) which would serve to increase their demand in the moment. So I think there is both movement along the demand curve AND a rightward shift of the curve.

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