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Chipotle Supply And Demand

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Whenever the term economics come up the two terms that seem to be put together are supply and demand. Supply and demand is the amount of a commodity, product, or service available and the desire of buyers for it considered as factors for regulating its price. This concept is important, because without it producers don 't know how much of their product to make and what to price it at. Chipotle a Mexican grill is an establishment that has been open since 1933. This was a small business until McDonalds became an investor in their company in 1998 and their was no looking back from then. Their expansion was rapid leaving more room for mistakes. This Mexican grill was quite popular until it had a fall out with a contaminate in their meat in December of 2015. The contaminate that was found was E.coli. E.coli is a powerful contaminate and has the power to kill someone. Chipotle had several outbreaks where their meat was contaminated and as a result that caused customers to not want to go their in fear of being contaminated. The supply was their, but the demand for the food quickly plummeted causing the company to lose lots of profit. As a result the company has been spending millions to try and regain their customers. Supply and demand is a concept that is very important for the development of any company; to maximize sales you must have plenty of both with supply having enough product to sell, and demand being the customer base that has been built.

E. Coli is a serious contaminate

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