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PostPosted: Tue Jun 14, 2011 3:00 am 
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Peanut Gallery
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Joined: Thu Nov 26, 2009 9:40 pm
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Location: Bat Country
That is not how prices work. The magical price wizard casts several spells to set prices.

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PostPosted: Tue Jun 14, 2011 7:43 am 
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Arathain Kelvar wrote:
1) Other items at McDonald's have not seen similar increases. For example, McChicken is now on the dollar menu.


Not a very good example to be fair...they majorly nerfed the McChicken when it went on dollar menu status.


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PostPosted: Tue Jun 14, 2011 9:26 am 
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Rafael wrote:
It does not follow that just because a good's price changes, that a substitute or complementary good will react in price only through the substitute or complementary relationship.


Exactly my point. The Big Mac price can jump around all over the place due to any number of factors, including such things as advertising campaigns, a shortage of special sauce, a change to the burger, or increased demand due to starting up McCafe. There's no way to correlate one product to the market as a whole. So, if all burgers increased in price by 20%, a case could possibly be made. But, if you're looking at one item, there's so many variables as to make the extrapolation to the market complete nonsense.


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PostPosted: Tue Jun 14, 2011 11:17 am 
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A Big Mac takes about as many resources and labor to make as a cheap USB stick, in the same ballpark. I think the price is fair. The food industry deserves to have a high market cap. because it is an extensive process and also requires a lot of real estate. Also food is perishable.


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