The narrator ends the story with feelings of "anguish and anger." He is angry at himself for allowing his feelings for Mangan's sister to dictate his actions. He is also angry at the bazaar because he realizes it is not some exotic place where he'll find some treasure to present...
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to Mangan's sister; the bazaar is just an excuse to make some money.
When the narrator gets to "Araby," most of it has closed and most of it is in darkness. He approaches a cafe where a woman and two men are talking and counting money. The woman is English and speaks to the narrator "out of a sense of duty." This is not indicative of the "magic" or exoticism of the implication the narrator had of the bazaar prior to actually getting there. The word "Araby" ("Arab") suggests a non-Christian, Eastern mystery; something the narrator has not experienced, having grown up in a Catholic household. The magic of "Araby" is created by the narrator as this Eastern, exotic land; his sensual idealizations of Mangan's sister coincide with his exotic notions of the bazaar. Ultimately, this magical quality does not hold up for him because his experience with the business-like English (not exotic) woman leaves him feeling angry at himself and the bazaar.
Some scholars have also suggested that because the English woman was "not encouraging" the narrator equates her reaction with a potential reaction from Mangan's sister. The narrator also feels that he's failed in his quest to get her something from the bazaar. Perhaps more importantly, the stark and bland reality of the bazaar leaves the narrator feeling that his "quest" was not so adventuresome or interesting.
Enumerate the activities taking place at Araby. To what extent do they sustain its "magical name"?
At least in the eyes of the boy, they most certainly do not live up to the magic of its name. By the time he arrives, almost all the stalls are closed up and the shop keepers are idly chatting about this and that. His interaction with the one shop keeper leaves him thus:
Gazing up into the darkness I saw myself as a creature driven and derided by vanity; and my eyes burned with anguish and anger.
The fact that the place had lost all its magic completely ruins it for the boy.
Enumerate the activities taking place at Araby. To what extent do they sustain its "magical name"?
The bazaar itself in Joyce's "Araby," doesn't fulfill its magical name. The image of the bazaar that Mangan's sister and the narrator have is an illusion. That's the point of the bazaar in the story.
By the time the boy arrives, it's half-closed, the conversation by the workers that he overhears is silly and coarse and trivial, and the objects for sale are not worth buying.
The boy realizes the bazaar is just a low-rent place to buy worthless trinkets sponsored by the church for the purpose of making money for the church. It is the destruction of this illusion, that leads the boy to his realization, or epiphany, that destroys his other illusions: that Mangan's sister is somehow akin to the Virgin Mary, that he is a holy warrior, and that they have some kind of special relationship.
He realizes how foolish and silly he's been. The blindness, figuratively, is lifted from his eyes.
Enumerate the activities taking place at Araby. To what extent do they sustain its "magical name"?
There is a deliberate contrast in the text between the expectation of the boy as he reaches the bazaar which bears the "magical name" of Araby and then the actual mundane and rather humdrum reality of what goes on inside. He sees two men counting money and some English people engaging in everyday gossip. The hall itself, far from being the site of eastern promise and magical mystery, is described in a very serious way:
Nearly all the stalls were closed and the greater part of the hall was in darkness. I recognised a silence like that which pervades a church after a service. I walked into the centre of the bazaar timidly.
The comparison of the bazaar to a church gives the bazaar a serious, sombre and ceremonious feel that makes the boy nervous and shy, as indicated in the timid way in which he walks to the centre of the bazaar. In addition, note the way that the "greater part of the hall was in darkness." This too is important in the way that the reality of the bazaar is presented as being such a contrast from the fevered expectations of the boy whose romantic ideals and imagination have got the better of him. The description of what happens inside the bazaar belies the boy's expectations and the sense of anticipation and excitement he feels when he hears the word "Araby," which he says casts "an Eastern enchantment over me." The end of the story makes it clear that his understanding of the reality of Araby coincides with his realisation that his romantic hopes are not real.