How is consumer sovereignty at work at McDonald? Give an example of a hit and a miss
Please provide the best answer for the statement.
Consumer sovereignty determines what goods get produced in the market and at businesses. If consumers like a product, a company will find it profitable to produce and sell it (a hit). If consumers do not like a product, a company will find it unprofitable to produce and sell it (a miss). An example of a recent hit at McDonald is the “Big Extra” (introduced in 1999). An example of a recent miss is the “55-cent special” (1997).
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Wealth decreases as a result of ________ and/or ________.
A. positive saving; capital gains B. negative saving (borrowing); capital gains C. negative saving (borrowing); capital losses D. negative saving (borrowing); crowding out
When the Fed increases the money supply,
A) the interest rate rises and this stimulates consumption spending. B) the interest rate falls and this stimulates investment spending. C) the interest rate rises and this stimulates investment spending. D) people spend less because they have more money.
The most common form of price discrimination in international trade is
A) dumping. B) non-tariff barriers. C) Voluntary Export Restraints. D) preferential trade arrangements. E) product boycotts.
The contestable market model of oligopoly bases pricing and output decisions on:
A. the threat of new entrants into the market. B. market structure. C. market share. D. the degree of product differentiation.