how do restaurants calculate the prices of each dish? Do they accurately do it or just a rough estimate?
In: Economics
This question betrays a fairly fundamental misunderstanding of how prices work – prices are not set to be the lowest that they can be given costs. They’re set to be the highest that people will pay. So it’s very simple: if everybody’s buying it, you slowly put the prices up. If nobody’s buying it, you either put the prices down, or if that isn’t viable, drop it.
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