What Information Would You Seek If McDonald's Asked You to Do

question 10

Short Answer

What information would you seek if McDonald's asked you to do research on identifying the best location for a franchise in a given area?

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Definitions:

Good Y

Typically, a variable used in economic models to represent a generic good or service in the market.

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in consumer income.

Inferior Good

is a type of good whose demand decreases when the income of consumers increases, contrary to what is observed with normal goods.

Cross-price Elasticity

A measure of how the demand for one good responds to a change in the price of another good, indicating their substitutability or complementarity.