Risk of Entry by Potential Competitors in Fast Food Industry

6. The ballpark sense of principle that defines the generally observed relationship between have, supply, and hurts as increases the price goes up, which attracts new suppliers who increase in supply bringing the price back tom normal. However, in the marketing of high price (prestige) goods, more(prenominal) as perfumes, jewellery, watches, Cars, Liquor, a let loose price may be associated with upset quality, and may reduce demand. Demand is how much desire consumer have for de fruit or service is available .When demand is great and supply is low the price of a product or service increase when demand is low and supply is great . The price of a product or service decreases. The effect on price is the quantification of supply and demand. Demand in many instances is driven by disposable income and free time. Henry crossroad recognized this in increasing the wages of his workers and decreasing their work time. 8. kind between hazard and yield The relationship between riski ness and return is a fundamental financial relationship that affects evaluate rates of return on every existing asset investment.The Risk-Return relationship is characterized as being a positive or direct relationship meaning that if in that respect argon expectations of higher levels of risk associated with a particular investment and so greater returns are required as compensation for that higher expected risk. Alternatively, if an investment has relatively lower levels of expected risk wherefore investors are satisfied with relatively lower returns. This risk-return relationship holds for individual investors and business managers.Greater power points of risk essential be compensated for with greater returns on investment. Since investment returns reflects the degree of risk involved with the investment, investors need to be able to determine how much of a return is appropriate for a given level of risk. This attend is referred to as pricing the risk. In order to price th e risk, we must first be able to measure the risk (or quantify the risk) and then we must be able to decide an appropriate price for the risk we are being asked to bear.