ECONOMICS (CBSE/UGC NET)

ECONOMICS

DEMAND

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

There is a sale on Big Mac’s at McDonald’s. What would happen to overall demand for fries at McDonald’s?

A	Increase
B	Decrease
C	Stay the same
D	None of the above

Explanation:

Detailed explanation-1: -In this case study, it is likely that the increased demand for Big Macs is due to several factors, including the fact that the sandwich is a popular choice for meal-time and that it is affordable.

Detailed explanation-2: -McDonald’s has 69 million customers per day. McDonald’s sells 9 million pounds of its fries every day.

Detailed explanation-3: -The Food Theorists found that the large McDonald’s fry was the best deal money-wise, at $1.26 per gram. Close behind were Wendy’s large fries, at $1.32 per gram, and Arby’s medium fries, which offered more fries than the large at $1.35 per gram.

Detailed explanation-4: -Is the demand elastic or inelastic? The demand for McDonald’s products is elastic. Changes in price, caused by the company’s decision or regulatory influences such as tax and subsidy policies, can lead to fluctuations in demand in the short term.

There is 1 question to complete.