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  • Sep 26, 2012, 07:43 AM
    bronzie
    Ask an economist a question
    Nathan is a successful public relations (PR) consultant, thanks to an outgoing personality and sharp intelligence. At 35, he is near the height of his earnings potential, at around £100,000+per year. He started his career with a student loan of £8000. The interest on this loan was subsided by the government, but his starting salary was also low. Ten years ago, he and his partner, Tracy, wanted to buy a £75,000 house in Norwich, and this meant borrowing money of mortgage £65,000 and using Tracy’s savings of £10,000. As Nathan’s children were growing up, he received several promotions but has now left his firm to become a freelance PR consultant, and his income has greatly increased. He is developing an expensive taste for tailor-made suits, on the grounds of the image he needs to portray to clients. He is also weighing up the cost and benefits of buying a new ‘peoples carrier’ vehicle for his family.
    On his leaving university, Nathan changed from spending money on parties to buying a house. His first house was very limited by what he could afford on a starting salary. As he got promotions, he could afford a wider selection of properties, more expensive holidays, clothes, and so on.
    Explain whether Nathan’s habit of buying tailor-made suits is a ‘need’ or a ‘want’
  • Sep 26, 2012, 07:46 AM
    AtlantaTaxExpert
    This is CLEARLY a homework question, one that, under the rules of this forum, cannot be answered.

    Further, the question has NOTHING to do with taxes, another reason no answer will be forthcoming.

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