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MacDonald’s has recently introduced the Super Burger, a vegetarian version of its classic hamburger. How would cattle market be effected if the Super Burger is more popular than regular hamburger and the grain, used to feed cattle, price increases simultaneously?
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Coca-cola is one of the biggest soft drink operator in the United States. In the US, each bottle of Coke costing only $0.50. In the Dubai, each bottle of Coke selling at 5 AED. The nominal exchange rate of AED to the US dollar is 3.5 AED/USD. What can these numbers tell to economists? Why the law of one price not hold? Giving the globalization condition, would the integration and stable economy make Coke to be equally affordable around the world?
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