1. How much cheaper are cars, TVs, DVDs, phones and computers than they used to be – and why?

2. Cheaper than ever before “Tesco is offering what it claims is the UK's cheapest digital set-top box. With a price tag of just £10, the Freeview box will certainly sound like a bargain to anyone who forked out over £100 to be in the first wave of Freeview box owners. Sitting next to it on the shelf could be Tesco's newly- launched £9 DVD player, while other supermarkets and the internet are offering equally knock-down prices for a range of electronic goods.” “Tesco is offering what it claims is the UK's cheapest digital set-top box. With a price tag of just £10, the Freeview box will certainly sound like a bargain to anyone who forked out over £100 to be in the first wave of Freeview box owners. Sitting next to it on the shelf could be Tesco's newly- launched £9 DVD player, while other supermarkets and the internet are offering equally knock-down prices for a range of electronic goods.” (BBC News, 2007) (BBC News, 2007) Source: http://news.bbc.co.uk/1/hi/technology/6968789.stm Source: http://news.bbc.co.uk/1/hi/technology/6968789.stmhttp://news.bbc.co.uk/1/hi/technology/6968789.stm

3. How much have prices fallen over the last ten years? Powerful computers DVD players Small TVs and flat monitors Electronic toys Cameras and camcorders Musical equipment Mobile phones CD and DVD discs  90% (£2,500 model now £250)  90% (£300 player now £30)  76% (£400 model now £100)  45% (£20 toy now £11)  40% (£300 camera now £180)  40% (£50 boogie-box now £30)  33% (£90 handset now £60)  50% (£16 disc now £8) Source: Dr Mark Perry, University of Michigan http://mjperry.blogspot.com/2008/07/for-some-products-theres-been-major.htmlhttp://mjperry.blogspot.com/2008/07/for-some-products-theres-been-major.html

4. Why have prices fallen? There are many reasons for falling prices, but one KEY FACTOR has been the falling costs of making electronic goods. In particular, the low wages paid to workers in China has led to factories being set up there that can produce goods more cheaply than in Europe. Much of what we buy is now imported from China – and is very cheap to buy. The lives of shoppers in the UK and factory workers in China have become inter-connected. There are many reasons for falling prices, but one KEY FACTOR has been the falling costs of making electronic goods. In particular, the low wages paid to workers in China has led to factories being set up there that can produce goods more cheaply than in Europe. Much of what we buy is now imported from China – and is very cheap to buy. The lives of shoppers in the UK and factory workers in China have become inter-connected.

5. Good news “A piece in The Times newspaper last year reported a decline in the number of burglaries, which was put down to the fact that the thieves can no longer get a good price for the items they steal. Who wants to nick a second hand DVD player, when you can buy a new, legal one for £20?” (BBC News, 2005) “A piece in The Times newspaper last year reported a decline in the number of burglaries, which was put down to the fact that the thieves can no longer get a good price for the items they steal. Who wants to nick a second hand DVD player, when you can buy a new, legal one for £20?” (BBC News, 2005)

6. Signs of the times According to BBC News, you know manufactured goods are getting cheap when: According to BBC News, you know manufactured goods are getting cheap when:  children get spoilt at Christmas, because toys are so affordable  CDs are sent out as junk mail  repair shops disappear from the high street  it's cheaper to buy a new kettle, than to fix an old one Source: http://news.bbc.co.uk/1/hi/business/4174587.stm http://news.bbc.co.uk/1/hi/business/4174587.stm