EBK MICROECONOMICS
2nd Edition
ISBN: 9780134458496
Author: List
Publisher: VST
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 5, Problem 16Q
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Choose a good or service you are familiar with. It should be something that is currently available for purchase. If your classmates would be unfamiliar with this good or service, provide a brief description.
Initial Response: Complete all items below:
1) Choose the most likely demand shifter (the things that shift demand) for your product and explain why and how the demand curve is most likely to shift if there is a change in that demand shifter. If the demand curve shifts in the way you are suggesting, what will happen to equilibrium price and quantity?
2) Choose the most likely supply shifter (the things that shift supply) for your product and explain why and how the supply curve is most likely to shift if there is a change in that supply shifter. If the supply curve shifts in the way you are suggesting what will happen to equilibrium price and quantity?
3) If both the supply and demand curves shift in the way you suggested in #1 & #2 above, what will happen to equilibrium…
Q2
Why may a company intentionally limit supply when consumers want more of a product?
Chapter 5 Solutions
EBK MICROECONOMICS
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Why does a demand curve with a constant slope not...Ch. 5 - Prob. 10Q
Ch. 5 - How is the price elasticity of demand calculated...Ch. 5 - Prob. 12QCh. 5 - What can income elasticity of demand tell us about...Ch. 5 - Prob. 14QCh. 5 - Prob. 15QCh. 5 - During an economic slump, such as the 2008...Ch. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 7PCh. 5 - Prob. 8PCh. 5 - Prob. 9PCh. 5 - Prob. 10PCh. 5 - Prob. 11PCh. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 1ACh. 5 - Prob. 2ACh. 5 - Prob. 3A
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Question The following appeared in an article in the Wall Street Journal: “Last week, true to discount roots dating to 1971, Southwest [Airlines] launched a summer fare sale on domestic flights, with one-way prices as low as $49. As in the past, major competitors were forced to follow suit.” Why would other airlines be “forced” to follow Southwest’s fare decrease? What if this fare decrease took place during an economic recession, when incomes and the demand for airline travel were falling?arrow_forwardexplain how and when demand and supply have changed (shifted) for online shopping. Provide examples of historical or current events where market demand and market supply for online shopping have shifted significantly, and state the factors that you believe have caused the shift in supply and/or in demand.arrow_forwardSolve the attachmentarrow_forward
- Explain why you think that the demand of one product may diminish as prices are increasedarrow_forwardGive an example of how a business implements the law of demand in its pricing structure. How do consumers react as prices are lowered? Is it a linear relationship between price and demand?arrow_forwardOrganic eating is the new trend! What is the impact that supply and demand have on pricing?arrow_forward
- Suppose you are a business owner. Discuss how you would use various demand elasticities (own-price, cross-price & income) in your decision making process.arrow_forwardTwo drivers-Kenji and Lucia-each drive up to a gas station. Before looking at the price, each places an order. Kenji says, "I'd like 5 gallons of gas." Lucia says, "I'd like $20 worth of gas." Which of the following statements is correct? Check all that apply. Kenji's price elasticity of demand is 1. Lucia's price elasticity of demand is 0. Lucia's price elasticity of demand is 1. Kenji's price elasticity of demand is between 0 and 1.arrow_forwardMatch the following situation to the best description in the pull-down menu: Less of a product is offered for sale because of a decrease in its price v (Click for List) increase in demand decrease in quantity demanded decrease in demand increase in supply increase in quantity supplied decrease in supply decrease in quantity supplied increase in quantity demandedarrow_forward
- Suppose that improved technology lowers the cost of manufacturing skis. What effect would this have in the market for skis?arrow_forwardQ.4.1 Read the excerpt in the textbox and use the information to answer the question below: http://clipart-library.com/citrus-cliparts.html Adapted from the Farmer's Weekly. Written by Siyanda Sishuba A strong increase in global demand for citrus has so far been evident in the 2020 export season, according to Justin Chadwick, CEO of the Citrus Growers' Association of Southern Africa. In a statement, Chadwick said increased global demand for lemons had resulted in 4,5 million 15kg-equivalent cartons being shipped to date. This was double the 1,8 million cartons exported during the same period in 2019. https://www.farmersweekly.co.za/agri-news/south-africa/strong-demand-for-sa- citrus-at-start-of-2020-export-season/[Accessed 19 March 2021]. With reference to the excerpt above, and assuming that the majority of the sales of citrus are going to Europe, explain the impact this increase in the demand for citrus fruit will have on the rand/euro exchange rate and the value of the rand. Use a…arrow_forwardMandy has a lemonade stand. Her mother pays for all of her supplies, so she only cares about maximizing her revenue. An economist tells Mandy that at her current price, the demand for her lemonade is inelastic. To maximize revenue, Mandy shouldarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncEconomics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Elasticity of Demand- Micro Topic 2.3; Author: Jacob Clifford;https://www.youtube.com/watch?v=HHcblIxiAAk;License: Standard YouTube License, CC-BY