#business

Explain the law of supply and demand. Concepts: Equilibrium price, surplus, shortage. Shift factors: Income, Preferences, Substitutes. Diagram description: X (Quantity) and Y (Price) axes with intersecting curves.

Food truck menu engineering and pricing. Formula: (Food Cost + Labor + Overhead) ÷ Desired Food Cost % = Menu Price. Example: $3 food cost ÷ 30% = $10 menu price. Steps: 1. Calculate exact recipe costs (spreadsheet). 2. Factor labor per item. 3. Include overhead (truck payment, gas, permits). 4. Set target profit margin (30-35%). 5. Competitive analysis. 6. Test pricing with customers. Menu psychology: strategic high prices (anchoring), combos for value perception. Explain menu mix analysis and star items vs dogs.