Cross-Price Elasticity. B. B. Lean is a catalogue retailer of a wide variety of sporting goods and recreational products. Although the market response to the company's spring catalogue was generally good, sales of B. B. Lean's $140 deluxe garment bag declined from 10 000 to 4800 units. During this period, a competitor offered a whopping $52 off their regular $137 price on deluxe gar- ment bags.
Calculate the arc cross-price elasticity of demand for B. B. Lean's deluxe garment bag.
