During an economic slump such as the 2008 recession, what pricing strategies could a fast-food chain such as McDonald's use to maintain its sales? Use some of the concepts discussed in this chapter in your answer
What will be an ideal response?
Fast food firms usually face a relatively price elastic demand curve. The demand for fast food is also relatively income elastic as consumers tend to eat out less as their income falls. For firms that face an elastic demand curve, total revenues can be increased by reducing prices.
Economics
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Technological progress means that we produce more output with the same amount of inputs
Indicate whether the statement is true or false
Economics
If the price of a good has risen over time,
a. it must have become more scarce. b. it must have become less scarce. c. it has become more scarce only if the price adjusted for inflation has risen. d. it has become less scarce only if the price adjusted for inflation has risen.
Economics