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?
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.