I saw an AP item linked on Drudge, McDonald's sales keep rising, even with price hike. This got me to wondering if McD's food might be a Giffen Good. The whole idea is kind of iffy, if you think about it, but it does seem like McDonald's satisfies the main criteria to at least be a candidate.
I think to really qualify, the increase in demand has to be because of, and not just in spite of, the price rise. This means that the price rise itself has to cause a reduction in disposable income, which causes more upscale consumption to be eliminated in favor of the downscale last resort item.
At any rate, people are being herded into McDonald's by the current conditions.
Does McD still have their dollar menu? I think that’s what many people go for. Didn’t Wendy’s quit their dollar items? I know Sonic raised their dollar burgers to $1.29. Sonic has raised their prices considerably and what used to be their medium sized drinks are now their large. Their shakes have gotten small, too. They’ve lost me as a customer.
<Giffen Good.
Well, you learn something new everyday. Thank you.
I stock up on light bulbs and paper goods, but as we edge into fall, will stock up on detergents and canned goods. We have a small one now, but I’m thinking about getting a chest freezer, but with our weather, maybe I can just toss food onto the deck and let it freeze there. :)
While stocking up for Armageddon is all well and good, I stock up mainly due to inclement weather and being unable to get to the store at several points during the winter.
I’ve noticed that some items which were $1.00 at Walmart are now $1.19; nothing that will break me, but I’m keeping my eyes open for sales for stocking up. And though I’m not feeling a pinch now, more and more I find myself saying we don’t need something and saving the money.