Social Studies, 02.03.2020 23:15 Mckenzie8062
Suppose you manage a convenience mart and are in charge of ordering products, but the home office sets the prices. In your area, the income elasticity of demand for peanut butter is –0.5. Because of local factory closings, you expect local incomes to decrease by 20% on average in the next month. As a result, you should stock peanut butter.
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