17.The Super Global International Food Market is filled with nuts, books, vegeta

Question

17.The Super Global International Food Market is filled with nuts, books, vegetables, fruits, rice, foreign DVDs, international magazines and more. Find foods from Armania, Turkey, Russia, India and beyond. The owner takes pride in offering fruits and vegetables at competitive prices. Super Global currently sells papaya for $1.60/pound. The company believes that $1.60 is its optimal price. The company's variable cost is $0.95/pound. Calculate the elasticity coefficent that would make $1.60/pound the optimal price. Round your answer to one decimal place.

ANSWER IS 2.5 , SHOW WORK TO GET ANSWER

Explanation / Answer

Elasticity Co-efficient = Optimal Price per unit/Contribution per unit

= 1.6/(1.6-0.95)

= 1.6/0.65

= 2.46

= 2.5 ..ans

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