The manager of a hyperrmarket accidentally mismarked the price of 10-killo bag of rice at BD4.38 instead of the regular price of BD5.18. At the end of the week, the store's inventory of 200 bags of rice was completely sold out. The store normally sells an average of 150 bags per week. What is the store's arc elasticity of demand for rice? -1.17 -2.16 -1.71 -0.58

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 1.1P: (Calculating Price Elasticity of Demand) Suppose that 50 units of a good are demanded at a price of...
icon
Related questions
Question

The manager of a hyperrmarket accidentally mismarked the price of 10-killo bag of rice at BD4.38 instead of the regular price of BD5.18. At the end of the week, the store's inventory of 200 bags of rice was completely sold out. The store normally sells an average of 150 bags per week. What is the store's arc elasticity of demand for rice?

 

 

-1.17

 

 

-2.16

 

 

-1.71

 

 

-0.58

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Sales
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ECON MICRO
ECON MICRO
Economics
ISBN:
9781337000536
Author:
William A. McEachern
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning