2006-10-05 17:23:09 · 3 answers · asked by Anonymous in Education & Reference ➔ Higher Education (University +)
A change in the price of a good affects the quantity sold but not the demand curve. It would seem the previous person is in error. Basically when demand goes down, prices fall to increase the quantity demanded (but not the demand, its curve stays the same).
Demand: A media story breaks out that someone found a human finger in her chili from a fast food restaurant (this decreases demand).
Supply: Fewer children are available to apply for fast food jobs (this decreases supply).
2006-10-05 18:02:44 · answer #1 · answered by Robert B 5 · 0⤊ 0⤋
Factors that would effect the supply and demand curves for a fast food:
Decrease in Demand: E.coli outbreak. Health dept issues a warning that an e.coli outbreak has been traced back to beef served in McDonald's restaurants. This would cause the demand curve to shift down (or to the left).
Increase in demand: Study released shows that fast food is not as bad for you as previously thought. Demand curve shifts out (to the right)
Decrease in supply: Gov't imposes stiff regulations on fast food restaurants. Supply curve shifts up.
Increase in supply: The price of beef and potatoes falls. Reduction in costs allows supply to increase, supply curve shifts down.
2006-10-06 03:44:36 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Demand- location and speed of other restaurants, businesses in the area, prices of food, etc.
Supply- wholesale cost of food, taxes (some places have special taxes on fast food), labor market, etc.
2006-10-05 17:27:17 · answer #3 · answered by jimmywalls1982 3 · 0⤊ 0⤋
There could be a war and then certain items like important foodstuff would be purchased even at very high prices in some countries which may end up facing a severe shortage of food and commodities in a warlike situation.
2016-03-18 05:28:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋