On the first day of school, the school store had 100 pencils for sale at $1 each. at the end of the week, there were 90 pencils left. the second week, the price of pencils dropped to $.75 each. at the end of the week, there were 75 pencils left. the store dropped the price $.25 each week, and at the end of the fourth week, there were no pencils left. which price was the market clearing price?

Question

Emily Wilcox

Business

8 May, 13:24

On the first day of school, the school store had 100 pencils for sale at $1 each. at the end of the week, there were 90 pencils left. the second week, the price of pencils dropped to $.75 each. at the end of the week, there were 75 pencils left. the store dropped the price $.25 each week, and at the end of the fourth week, there were no pencils left. which price was the market clearing price?

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Yadiel · Answer 1

After the second week, the price of the pencils were dropped $.25 every week from $.75. So on the third week the price was $.50 and on the fourth week the price should be $.25. Since the pencils were sold out on the fourth week, the market clearing price is $.25.