University | The Royal Melbourne Institute of Technology (RMIT) |
Subject | ECON1025: Prices and Market |
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!
Answer
Recent Solved Questions
- Imagine that you are currently working for a precision medicine startup: Machine Learning Paper Review in Precision Medicine, Written Assignment 1, NUS, Singapore
- Go Business offers PSG solutions for enterprises in Singapore: Collective Intelligence and Entrepreneurship, Assignment 1, JCU, Singapore
- Design an ontology based on- Accidents can be categorised as chemical, electrical, fire, kinetic or liquid: Collective Intelligence and Entrepreneurship, Assignment 1, JCU, Singapore
- Project Control Monitoring, Assignment, HU, Singapore: Deliberate Project MONITORING AND CONTROL or PMC Identification
- DSM500: Final Project Report, Coursework 2, UOL, Singapore
- DSM080: Financial Markets, Assignment, UOL, Singapore: A grapefruit juice futures contract is for 15,000 pounds of frozen grapefruit juice
- DSM080: Financial Markets, Assignment, UOL, Singapore: The share price of a certain stock today is $42.50, and five-month European style call options with a strike price of $45 currently sell for $4.25.
- DSM080: Financial Markets, Assignment, UOL, Singapore: A trader who is working in the gold markets is able to borrow money at the interest rate of 7% per annum
- DSM080 Financial Markets, Assignment, UOL, Singapore: A dollar-based American corporation has decided that it will have to pay 6 million UK pounds in three months
- Principle of Finance Assignment, UCD, Singapore: National Gaming Inc. (National) operates the weekly lottery in the country
UP TO 15 % DISCOUNT