Question
suppose at a local grocery store the price of butter increase from 1 to 1.50 pet pound. as a result the quantities demanded of margarine increase from 500 to 600 pounds.
a. compute the arc cross elasticity of demand?
b. interpret the result?
a. compute the arc cross elasticity of demand?
b. interpret the result?
Answers
sajid
You have just opened a new grocery store. An article in a newspaper
reports that the price of recreation is expected to increase by15%. How
will this affect your store’s sales of generic food.
reports that the price of recreation is expected to increase by15%. How
will this affect your store’s sales of generic food.