Fill the blank
When price increases slightly, many customers stop buying, showing ___ demand
Elastic demand
If price of menu items capped at $1, and supply cost increased, what way does the supply curve shift to?
The left
In the presentation, what was an example of price discrimination?
McDonald's $1,$2,$3 menu
$1 covers less cost per unit. To stay profitable, suppliers need a higher ____.
Selling price
Burger king raises its prices and McDonald's sees more customers. What kind of goods are their products?
Substitute goods
What two things did McDonald's use to try to replace the dollar menu?
The $1,$2,$3 menu, and the McPick 2
McDonald's compared extra revenue per item to extra cost when evaluating the dollar menu. This process is ___.
Marginal Analysis
At $1 __ was high. (Hint: Consumers loved cheap options)
Consumer demand
By offering $1 drinks, but $3 burgers, McDonald's used what strategy to capture customers with different budgets?
Tiered pricing
McDonald's keeps their prices relatively low, by producing food efficiently, a result of economies ___.
Economies of scale
When McDonald's supply curve shifts left, demand stays constant, and prices go up, what happens to the quantity?
The quantity decreases
How much does a BigMac cost today?
$5.79
McDonald's ended the dollar menu because rising costs led to no profit, showing businesses must consider their ___.
Costs of production
If McDonald's runs a limited time deal and sells out quickly, what curve needs to shift to prevent a shortage?
The supply curve needs to shift right
$1 in 2002 is approximately worth how much today?
$1.80-$2.00