Analytical Assessment.

McDonald’s to bring happy meal Pokémon cards to Australia written by Shannon Grixti at 23
July 2021.There are two main point in this article. The first point is to increase the sale of happy
meal, the Pokémon card designed on the 25th anniversary of the happy meal. Second point is that
the shortage of the Pokémon card increased the prices of the card. In this article, market shortage
theory explain. A Shortage occurs when Demand exceeds Supply (Arrow and Capron, 1959)

Explain: This diagram explain the demand of Pokémon card and its price level. When the
demand of Pokémon increase causes shortage of card and increases prices (Frolic et al.2020) The
Second economic principal of inelasticity of demand explained in this article. Demand is
inelastic when a large change in price results as a small change in quantity. There are some
causes of inelastic demand. (i) Demand tends to be relatively inelastic for a good that is a
cheaper complement to a large, expensive one. ,(ii) Demand for necessities is usually relatively
inelastic,(iii) Demand for cheaper items tends to be more inelastic,(iv) If urgently required then
demand is usually inelastic,(v) Demand for unique products is relatively inelastic(Rezour et
al,2011) Third economic principle explain that under price of related good componentry items as
the Pokémon cards are a compliment to happy meals. A complementary good is directly related to
the usage of another linked or associated good or paired good. When the use of Pokémon card enhances
or increase the prices of happy meal. A complementary good has a negative cross elasticity of demand,
which means that if the price of one product rises significantly, the demand for related consumer goods
tends to fall (Yue et al.2006).

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This article precise the Pokémon card sale during the 25 th anniversary of the happy meal. Happy meal
designed a Pokémon card to attract the customer for the sale of happy meal. Good point of this article is
that the writer clearly explain the economic principal through the application of economic theory. Firstly
explain that the increasing sale through Pokémon card design. Secondly explain the shortage of Pokémon
card which increased its price. Thirdly explain that Pokémon card and happy meal is a complementary
goods.Forthly explain that the demand of card is inelastic. When demand is inelastic, goods are
complementary and it has inverse relationship.

Finally concluded that this article explain the prices of Pokémon card and its demand. This
article clearly explain the economic principal and its application through economic problem
shortage of goods, inelastic demand and the complementary of the goods. A shortage occurs
when demand for a product or service exceeds supply. When this happens, the market is said to
be out of whack. This is usually temporary as the product is replenished and the market returns to
normal. The price increase reduces demand and increases supply until the shortage is eliminated.
Equilibrium is the unique point where supply and demand curves intersect. In future to overcome
the shortage of Pokémon card market will raising prices because firms are motivated to raise
prices to increase profits. As prices rise, demand declines and less is demanded. The higher price
encourages suppliers to increase supply.

Reference:

Arrow, K.J. and Capron, W.M., 1959. Dynamic shortages and price rises: the engineer-scientist case. The
Quarterly Journal of Economics, 73(2), pp.292-308.

Frolich, M.A., Aguiar, N.R., Putnam, M.M. and Calvert, S.L., 2020. Adult reports of Pokémon GO play:
Stronger parasocial relationships predict increased nostalgia and decreased app
play. Imagination, Cognition and Personality, 39(3), pp.261-276.

Rezapour, S., Zanjirani Farahani, R. and Drezner, T., 2011. Strategic design of competing supply chain
networks for inelastic demand. Journal of the Operational Research Society, 62(10), pp.1784-
1795.

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Yue, X., Mukhopadhyay, S.K. and Zhu, X., 2006. A Bertrand model of pricing of complementary goods
under information asymmetry. Journal of Business Research, 59(10-11), pp.1182-1192.