Question
Chicken nuggets have fallen victim to rising prices. Burger King's largest franchisee in the United States said Thursday that it will soon reduce the number
Chicken nuggets have fallen victim to rising prices. Burger King's largest franchisee in the United States said Thursday that it will soon reduce the number of nuggets in meals from ten pieces to 8. The Burger King franchise also reduced the number of discounts it offers, and it hiked menu prices on some items. What do the recent moves by the Burger King franchise indicated about the price elasticity of demand of its customers? Is customer demand elastic or inelastic? Why? (HINT: Price changes come in different forms, not just an adjustment to the actual "price" but also packing size, count, incentives, etc.)
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