If Herbert the hair stylist raises the price of his cuts from $13 to $15 and the demand for his cuts falls from 300 to 260, then we conclude that, within the price range of $13 to $15, demand is
a. price inelastic
b. price elastic
c. unit elastic
d. cross elastic
e. income inelastic
C
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If a price ceiling is set above the equilibrium price in a market
A. rationing will be necessary. B. the quantity supplied will equal the quantity demanded. C. the quantity demanded will exceed the quantity supplied. D. surpluses of the commodity will develop.
What is asymmetric information? Describe with examples
Contractionary monetary policy refers to an insurance system that makes sure depositors in a bank do not lose their money, even if the bank goes bankrupt
a. True b. False Indicate whether the statement is true or false
Improvements in output per worker
A. Depend only on increases in the quality of capital equipment. B. Depend only on increases in the quantity of capital equipment. C. Depend in large part on increases in the quality of capital equipment and the quantity of capital equipment per worker. D. Do not depend on increases in the quantity of capital equipment or the quality of capital equipment.