Price Elasticity of Demand for McDonald's Meas Term Paper by JJean

Price Elasticity of Demand for McDonald's Meas
This paper studies the price elasticity of demand.
# 108154 | 762 words | 4 sources | APA | 2007 | PK
Published on Sep 24, 2008 in Business (Companies) , Economics (Micro) , Business (Consumer Behavior) , Economics (General)


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Description:

This paper studies the concept of price elasticity of demand using the McDonald's organization. The paper defines the price elasticity of demand as the proportionate change in quantity demanded as ratio of proportionate change in price. The paper relates that McDonald's was used to study the concept because they are widely accepted by consumers worldwide.

Outline:
Introduction
Discussion

From the Paper:

"When there is a price increase in substitutes, consumers naturally turn to the product thereby increasing demand for the product. When the price of the product (McDonald's meal) is increased its demand will remain inelastic. Producers gain from this change in elasticity (or inelasticity of demand) for its product as they will profit more from both demand as well as price increase.When the prices of complementary goods increases then producers are forced to increase the price of their products so that they could compensate for the cost of complementary goods. Regardless of the price prevalent in the market, the price of McDonald's meals will increase with in increase in the price of a salad, high priced breads or increase in prices of potatoes for French fries."

Sample of Sources Used:

  • Author not available, (2005). Sandwiches Subs & Wraps - US. Mintel International Group Ltd.
  • Buchholz, T. G. (1995). From here to Economy: A Shortcut to Economic Literacy. Dutton.
  • McDonald's Official Website: www.mcdonalds.com
  • Riley, J.(4-1-2008). McDonalds: Supplying food to meet changing demand. Farmers Weekly Interactive. [Online] at: http://www.fwi.co.uk/Articles/2008/01/04/108894/mcdonalds-supplying-food-to-meet-changing-demand.html

Cite this Term Paper:

APA Format

Price Elasticity of Demand for McDonald's Meas (2008, September 24) Retrieved August 08, 2022, from https://www.academon.com/term-paper/price-elasticity-of-demand-for-mcdonald-meas-108154/

MLA Format

"Price Elasticity of Demand for McDonald's Meas" 24 September 2008. Web. 08 August. 2022. <https://www.academon.com/term-paper/price-elasticity-of-demand-for-mcdonald-meas-108154/>

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