Game Theory - When McDonalds reduced it price on the Big Mac by 75% its customers also purchased fries and a soda. A newspaper reported that McDonald's was trying to revive its sales in the US with this promotion, however it did not. Within 2 weeks sales had fallen. Using game theory, what do you think messed up McDonald's plan?

Competition - Dell Computers - Dell Computer keeps a close eye on what its competitors are doing. Why do you think, using economics, Dell reacts more quickly and more substantially to pricing, product design, and advertising to its close competitors such as HP and Gateway than it does with Apple computer?

Sunday sale restrictions - Some states have had laws restricting the sale of most goods on Sunday. Most consumers oppose these laws because they find Sunday afternoon a good time to shop, however retail trade associations support these laws. Using economics, give reasons for the trade assoc to support these laws.

Future supply adjustments - The secretary -general of OPEC, stated that it would be easier for OPEC nations to make future supply adjustments to fix oil prices that are too high than it would be to rescue prices that are too low. From an economic stance, evaluate this analysis.

Price matching policies - Suppose the 2 rival "Super Stores", Walmart and Target both adopt price matching policies. If people can find lower advertised prices on any items they sell, then they will match the lower prices. Explain why this policy might not be good news for consumers.