Premium Essay

Delicious Food

In: Business and Management

Submitted By Ecitah19
Words 272
Pages 2
Analyze the demand function for a dinner in the restaurant Delicious Food, given the four changes listed below:

- The restaurant down the street, Fancy Meals, features a two for one meal special. Fancy Meals restaurant is the substitute of Delicious Food restaurant since they both in the same business.When Fancy Meals make features a two for one meal special,many customers will eat that restaurant instead of Delicious which will drive Delicious food's demand down.

- The opera provides a coupon for a 15% discount at Delicious Food for a meal with a 6:00pm reservation on opera evenings.
The oprera coupon will bring more costumer Delicious Food .Since 15% discount at Delicious Food for a meal ,there is a increases on demand when its price decreases.The demand curve for Delicious Food will increase and shift to the right.

- Bob’s Discounted Tires runs a special on tires; a 30 percent reduction in price if you buy four tires.
There is no connection between Bob’s Discounted Tires and the Delicious Food restaurant.If Bob’s Discounted Tires and the Delicious Food restaurant are close, Bob’s Discounted Tires's costumers stop by to Delicious Food restaurant and that may increase the demand curve of Delicious Food.On the other hand a 30 percent reduction will increase Bob’s Discounted Tires' demand.

- The main employer in town provides a 5% increase in salaries for white-collar workers.
Customers income is important affect on the demand of a product or service.5% increase in salaries for white-collar workers will increase the demand for Delicious Food meals. The demand curve will increase and shift to the

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