> Are people really paying a dollar more for a slice of cheese?!
You are exactly right, and here's a news article to prove it:
"The company embarked on a series of focus groups and extensive research. One message was loud and clear: People wanted to get their beloved double cheeseburger, with two pieces of cheese. If that meant paying a bit more for it, so be it. ...
So McDonald's decided on a two-pronged attack. Raise the price of the double cheeseburger to $1.19. But keep penny pinchers happy with a new burger on the dollar menu: The McDouble. Two beef patties with just one slice of cheese. " - http://abcnews.go.com/Business/Economy/story?id=6803935
People want to give you money for practically nothing? Good. Take the money. People want to pay more (or the same) for less? Good. Take the money.
What's with this fiction of "you get what you pay for". You hardly ever do, and that's ok. Our markets aren't rational. If they were, why would companies advertise?
You are exactly right, and here's a news article to prove it:
"The company embarked on a series of focus groups and extensive research. One message was loud and clear: People wanted to get their beloved double cheeseburger, with two pieces of cheese. If that meant paying a bit more for it, so be it. ...
So McDonald's decided on a two-pronged attack. Raise the price of the double cheeseburger to $1.19. But keep penny pinchers happy with a new burger on the dollar menu: The McDouble. Two beef patties with just one slice of cheese. " - http://abcnews.go.com/Business/Economy/story?id=6803935