Comment

A Walk on the Edge

624
Buck2/23/2010 9:06:51 am PST

re: #621 Obdicut

Do you have any reason to believe they would actually raise the price of anything? If people would still buy the same volume of fries at a nickel more, why didn’t they already price it at a nickel more?

Goods and services are sold at their optimal price point. If a company raises the price on something but loses volume, they often lose total profits. So, if raising the price of fries by a nickel had no negative effect on volume, why didn’t they already charge that price? And if it does have a negative effect on volume sold, why did they raise it and lower their total profits?

Here they sell it at $1 plus tax. Still the dollar menu, but with the tax added at the register.