Friday, January 27, 2012

KFC & Japan

One of the most popular items sold in Japan at "Christmas" time is Kentucky Fried Chicken - I'm not making this up. Here is another example of how changes in preferences (KFC in Japan) can be modeled using a demand curve to analyze market behavior. Note that their is an increase in the popularity of fried chicken by Japanese consumers, and as such economists would model this as the demand curve (which represents consumer behavior in a very simplified manner) shifts to the right. As you will note in the article linked at the beginning of the blog, Japanese consumers are standing in line waiting for their chicken and this is exactly what a rightward shift of the demand curve is representing. In other words, if the price remains the same, then there is an increase in quantity demanded due to the change (in this case) in Japanese consumer preferences for chicken.

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