Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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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.
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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…
Why may a company intentionally limit supply when consumers want more of a product?
Explain why you think that the demand of one product may diminish as prices are increased
Chapter 5 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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
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