Socio Political And Economic Comparison Of Tim Hortons
Based on Mankiw (2012), the law of demand infers that a decline in the price of a good increases the quantity demanded. Therefore, the price elasticity of demand gauges how much the quantity demanded reacts to a change in price. Demand for a product is deemed to be elastic in scenarios where the quantity demanded reacts considerably to changes in the price. Demand is described as inelastic if the quantity demanded responds only slightly to changes in the price.
The price elasticity of demand for any product gauges how willing shoppers are to purchase less of the product as its price increases. Since the demand curve shows the many economic, social, and psychological forces that drive preferences of consumers, there exists no seamless, universal rule …show more content…
Accordingly, food safety may undermine the brand name of the company as was the case with MacDonald’s when they were hit hard after an undercover television investigation accused the company of using a mainland supplier that re-labelled expired meat. Aside from this, industry analysts have indicated that issues with food quality have also added to other trends that have confronted western fast-food brands. In addition, many fast-food customers in China have turned away from their original curiosity as it relates to western fast-food, and are presently more peculiar about their food choices because they are actually more cognisant about their health. Also, as a result of urbanisation and overpopulated cities, China has numerous complications in terms of vehicles and parking. To combat the preceding, McDonald 's introduced restaurants and dessert kiosks targeting the general working class and pedestrians -it would be a good idea for Tim Hortons to replicate the aforementioned (The Financial Times,