Positive or negative supply shock

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Q1. You have been hired to be a consultant on pricing strategies for two different companies. Both of the companies have similar customer bases in that their customers fall into two well defined groups: college students and young well-paid professionals.

Q2. When McDonald's introduced its Dollar Menu strategy in Fall 2002, why was the company hoping the demand for its product was elastic? Did this turn out to be the case? Why or why not?

Q3. Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy?

Reference no: EM136706

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