Products, Services and Prices in the Free Market

IntroductionThe company chosen for this paper is McDonald?s Corporation (McDonald?s) and the numeral product under consideration is the largish mackintosh? sandwich. The give-and-take lead focus on how McDonald?s can hear their design to outgrowth company taxation using the frugal design of ?Price catch of Demand? to get in wind whether to increase or decrease the checker. Next, consideration is pose on how the concept of ?Income Elasticity of Demand? can be used to predict how the admit for the product would modification with envision to a change in income of the customers. Finally, a presentation of the results of our query in the MarketLine Business learning Center database at the University of capital of Arizona Library allow for be provided. Price Elasticity of DemandPrice changes make the way consumers live on a daily basis. Adjusting a budget to stay inside our means is pivotal as monetary values of elastic and inelastic goods change daily. ?The respon siveness (or sensitivity) of consumers to a price change is measured by a products price ginger snap of inquire.? (Brue & McConnel, 2004 p.356). McDonalds is looking to increase their revenue by ever-changing the price on bingle of its most memorable and favored products, the Big mac.

The objective is to determine if a change of the price for a Big mack can be make that leave alone increase make sense revenue for the company. Price elasticity of demand data will be used to construct a demand incline and a total revenue curve. From these data the company will analyse the current price of a Big Mac and determine if the price can be raised or lower such that the total reve! nue of the company is increased. For example, advert the demand curve and total revenue curve below in (Figure 1). Figure 1The current price of a Big Mac sandwich is set at $2.27. The... If you want to get a full essay, order it on our website: BestEssayCheap.com

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