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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (890651)9/29/2015 11:01:40 PM
From: i-node1 Recommendation

Recommended By
TimF

  Read Replies (2) | Respond to of 1574854
 
There is no difference. But when you raise prices for any reason your sales will go down, and when you raise prices with higher food or labor costs you will reduce profit margins which will reduce demand for labor.

This is a function of the price elasticity of demand. For a restaurant, particularly fast food, a change in price causes a substantial corresponding change in demand. In fact, this particular industry is about as responsive to price change as it gets. There is a good bit of economic research on this topic, some of which I previously posted here.



To: combjelly who wrote (890651)9/29/2015 11:46:04 PM
From: i-node  Read Replies (1) | Respond to of 1574854
 
I'm guessing the first 120 seconds of this high-school economics lecture should cover it for you.

khanacademy.org



To: combjelly who wrote (890651)9/30/2015 10:17:48 AM
From: J_F_Shepard  Respond to of 1574854
 
Because everyone is in the same boat. But labor doesn't work that way.
It does if you're in the same business in the same area.....there's nothing new happening here, changing wage rates are part of the businesses.......


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