Bailey's Barber Shop knows that a 5% increase in the price of their haircuts results in a 15% decrease in the number of haircuts purchased. What is the elasticity of demand facing Bailey's Barber Shop?
a. 0.05
b. 0.10
c. 0.33
d. 3.0
d
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The low point of the Great Depression was reached in the year
A. 1929. B. 1931. C. 1933. D. 1935.
A centrally planned economy has a planning authority that decides
A) how the products are produced. B) who receives the products. C) what products to produce. D) all of the above.
When the expected inflation rate ________, the short-run Phillips curve ________
A) rises; shifts downward B) falls; shifts upward C) rises; shifts upward D) falls; does not shift E) rises; might shift upward or downward depending on how the long-run Phillips curve shifts
A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is -5. The government must ________ the price of electricity by ________.
A. raise; 0.5% B. raise; 2.0% C. raise; 1.25% D. lower; 0.5%