Opening on April 1 in NYC, the Exchange Bar & Grill has food and drink prices that respond instantaneously to demand. As described in a Reuters article, if everyone wants hot wings, then, in $.25 increments, the price increases; if no one wants them, the price drops. Prices, though will not fluctuate more than $2 higher or lower than a base number. That means that you would not pay more than $9.00 or less than $5.00 for 6 hot wings because their starting price is $7.00. The restaurant has a ticker tape that will display price fluctuations.
The Economic Life
I have been wondering how we might graph the changing price for hot wings. Is quantity supplied constant or upward sloping? Is the demand curve shifting? Or do we just have a horizontal perfectly elastic supply curve that moves when management shifts it?