1. Introduction
While the nation is the 15th largest in the world in terms of nominal Gross National Product, it is the number 10 in electricity consumption According to the CIA World Factbook’s 2009 report. ~
the own-price elasticity of demand more simply referred to as price elasticity of demand,
the price elasticity of demand is Measuring how much quantity demanded changes sensitive to price change.
Adding “own” is the concept managers use to measure the price of demand for a product or service produced by their firm
This value puts % Change in Price on denominator and put % Change in Quantit
demand
- Set higher P & Sell more Q
■ Representative method
- Advertisement
3) Cost managemant
■ Effect of expand demand
- Set lower P & Sell more Q
■ Related with elasticity
- More elastic price elasticity of demand brings more benefit.
McDonald’s past and present
In 1955, Ray Kroc take over McDonald
Brother’s restaurant franchise right of sale,
and joint
- Strategic price setting (Many kinds)
(Optional product, Bundling, etc…)
2) Expand demand
■ Effect of expand demand
- Set higher P & Sell more Q
■ Representative method
- Advertisement
3) Cost managemant
■ Effect of expand demand
- Set lower P & Sell more Q
■ Related with elasticity
- More elastic price elasticity of demand brings more benefit.
Demands. Needs is some abstract desire which customers want, and Wants means some specific matter which can satisfy those essential Needs. When the purchasing power is supported, in that situation, those Wants is called as Demands. For example, some people feels thirty, and he wants to drink something. This is Needs.
If he wants to drink coke, then it is Wants. If he has 10,000won, then Wants wh