Posted on: 27th Jul 2023
ECON1025: Prices and Market Assignment, RMIT, Singapore Mcdonald’s, a big burger joint, is charging $5 for its very famous Big Mac hamburger and sells around 20 million
Question 1
Mcdonald’s, a big burger joint, is charging $5 for its very famous Big Mac hamburger and sells around 20 million Big Mac in a year in Singapore.
- Suppose Mcdonald’s increases the price of its Big Mac to $6 and still manages to sell the same quantity as the Big Mac. How much revenue will Mcdonald’s gain? What can you infer about the price elasticity of demand (PED) for Mcdonald’s Big Mac? Assume in an alternative scenario, the increase in the price of Big Mac to $ 6 reduces its quantity sold to 18 million. How much revenue will Mcdonald’s gain now? What can you conclude about the PED now?
- Given the two scenarios presented in part a, which one do you think is more likely and why? Present evidence in 100 words or less to support your prediction
- Suppose Mcdonald’s Big Mac and movie tickets have a negative cross-price elasticity of 1.5. What does this number tell us about the relationship between the Big Mac and movie tickets? Suppose, The Golden Village (GV), Singapore’s leading cinema exhibitor, decides to increase the price of its movie tickets by 10%. How will this development affect McDonald’s pricing decisions as indicated in part (a)? Discuss both scenarios.
Buy Custom Answer of This Assessment & Raise Your Grades
Get Help By Expert
ECON1025 Prices and Market Assignment bogging you down? MY Assignment Help SG is here to rescue you! Boost your academic performance at RMIT with our unparalleled online assignment help. Let our proficient experts handle the intricacies of your task while you focus on other priorities. Embrace our "Do My Assignment" service and experience academic success like never before. Don't wait; seize the chance to shine in your class!
Tags:-
ECON1025 Assignment ECON1025 RMIT
Answer
Recent Solved Questions
- Final Assignment: Migrating FashionOnline’s Infrastructure to AWS: A Strategy for Enhanced Availability and Data Protection
- HRM331: Talent Management – Strategic Shift from the War for Talent to the Wealth of Talent
- Marginalised Populations – The Structural and Cultural Exclusion of People Experiencing Homelessness in Singapore
- CVEN3501 Assignment 2: Groundwater Modelling of Drawdown from a Pumping Bore
- CSCI312 Assignment 2: Conceptual Modelling and Implementation of a Data Warehouse and Hive Queries
- CH2123 Assignment: Fugacity, VLE Modeling & Applications of Henry’s Law
- BAFI1045 Assignment -Constructing and Evaluating Passive and Active Portfolios Based on the Straits Times Index (STI)
- FIN2210E/FIN2212E Group Assignment: Financial Risk Management Analysis of Bursa Malaysia Companies
- FLM101 Assignment: A Film Analysis: Stylistic Techniques and Their Thematic Importance
- HRM Assignment Answer: Talent Transformation in the Age of AI: Turning Challenges into Opportunities via Ecosystem Innovation
UP TO 15 % DISCOUNT