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vitfil [10]
3 years ago
8

You might have heard your grandmother say, "when i was your age, candy bars cost a nickel." like candy bars, the price of fast f

ood has increased over time. in 1958, the year pizza hut introduced its large cheese pizza, the price was $1.50. in 2015, a large cheese pizza cost $10.49.
Business
1 answer:
aksik [14]3 years ago
5 0
This is due to Inflation.

As time passes, prices of commodities, labor, and services tends to increase.

In order for a healthy economy to grow, country's try to limit inflation and keep it at a minimal.

However, deflation, which is the exact opposite is avoided as it can hamper in the overall economic growth of the country.

The example of Pizza hut shows how, over such a long period of time, the prices of services and commodities can increase so much.


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This is a clear example of corruption taking place in a country where formal institutions or governments have collapsed or have been overthrown and the "new leaders" benefit from the situation. In this case the companies or firms which are "friendly" to the new government will flourish because no formal institutions or constraints remain. Instead they are replaced by informal constraints setup to favor specific firms and companies. That means that the "new leaders" may establish new rules for the companies or firms to follow at their will in order to favor whoever they want.

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