When McDonald's first opened their restaurants in Russia in 1990, the Big Mac meal cost 6 rubles. Three years later, the same meal cost 1,100 rubles. This would be an
Example of how:
A) demand can change.
B) how premium pricing can damage a product.
C) price elasticity works.
D) inflation can damage a market.
E) service is what matter the most to the average customer.

Question

Quizplus · Accepted Answer

The increase in price from 6 rubles to 1,100 rubles in just three years is a clear example of inflation damaging the market. It is highly unlikely that the demand for a Big Mac meal would have increased to such an extent in just three years to justify such a dramatic price increase. This demonstrates how inflation can have a significant impact on the pricing of products and can make them unaffordable for consumers.

When McDonald's First Opened Their Restaurants in Russia in 1990