Blog
The $1,095 TGI Friday experience and price elasticity of supply
3rd January 2014
For those that wanted to spend New Year's Eve enjoying a memorable meal at the iconic location of Times Square, NYC will surely have understood that such an experience would not come cheap, but to have to stump up $1,095 for the TGI Friday's experience...you'd have to be a real fan of that kind of fast food. But hang on a minute, I hear you ask, what did you get for your money?
"But here's what's included in the deal: Potato skins—with or without bacon! Chicken fingers. Plus heroes, empanadas and hot pockets. There also will be an open bar featuring "fresh, made-from-scratch cocktails." And, because you're paying extra for a special table, you'll enjoy exclusive snacks: "Hummus, salsa and bags of chips.""
There's clearly a fixed number of eateries in this location and with the surge in festive demand, the theory tells us that prices will rise as the Pes is very inelastic in nature - I wonder what McDonald's were charging!
Article from the Wall Street Journal found here.