If the demand for burgers is inelastic, does that mean that Mcdonalds can keep raising the price of a burgher?
Answer:
No, the PRICE is elastic or inelastic. Inelastic indicates no direct relation between deman and supply.
If demand outstrips supply, they can raise prices.
If price is inelastic, they can raise prices; immaterial of demand or supply.
Not necessarily. They could raise their prices on the scale that burger places would raise prices usually. However since it is such an inelastic good/service the customers may seek their burgers elsewhere (burger king) if mcdonalds continues to raise their prices beyond reason.
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