For my birthday me and my friends went to a mall than we
thought of eating something
Than we found KFC AND MCDONALDS we entered KFC, there we
faced a trade-off to select kfc or McDonalds than mc Donald’s became trade-off
to kfc
In KFC I observed something, the demand for kfc is more and
people like because of unique taste and Even the prices are high people are
interested in going to KFC it shows demand doesn’t only depend on price there
some non-price determinants which effects demand like (branding, product differentiation,
product quality, customer service, and so on)
That day it was Wednesday KFC, I went and asked the manager
that every day it will be this much crowd than he replied compared to everyday
on Wednesday the crowd will be more because on Wednesday we provide discounts
and some special offers. People are rational they always think about margin.
KFC has so many branches because people are more interested
in having those so they started mobilizing themselves by opening many branches
at different places. Mobilizing comes under determinant of supply.
KFC is a price elastic firm whereby the sensitivity of
quantity demanded to a change in price of a good or service is less than -1. When
there is demand, there will always be supply so that the market is equilibrium.
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