Shari and Mary have a business that provides personal fitness training services. They know that after raising their prices from $40 to $60 per hour, the quantity of hours they spent delivering training services fell from 90 to 50 hours per week. The demand for their services is:
a. inelastic, with a price elasticity coefficient greater than one.
b. inelastic, with a price elasticity coefficient less than one.
c. elastic, with a price elasticity coefficient greater than one.
d. elastic, with a price elasticity coefficient less than one.
c
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The assumption that firms meet the demand for their products at preset prices is the key assumption upon which ________ is built.
A. the supply and demand model B. the basic Keynesian model C. Say's Law D. quantity equation for money
U.S. GDP includes the market value of rental housing, but not the market value of owner-occupied housing services
a. True b. False Indicate whether the statement is true or false
Under a gold standard, a continual balance of surplus in any country can be sustained only as long as the country's gold reserves hold out
Indicate whether the statement is true or false
Which of the following is the best example of a variable cost for a major league baseball franchise?
(A) Stadium rent (B) Stadium maintenance (C) Ticket-takers' salaries (D) Manager's salary