Fantastic cuts hair salon knows that a 15% increase in the price of their haircuts will result in a 5% decrease in the number of haircuts sold. what is the elasticity of demand facing fantastic cuts? a. -0.05 b. -0.10 c. -0.33 d. none of the above
Solved
Show answers
More tips
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
- S Style and Beauty How to Make Your Lips Fuller? Ideas and Tips for Beautiful Lips...
- S Style and Beauty How are artificial nails removed?...
- F Family and Home How to Sew Curtain Tapes: Best Tips from Professionals...
- H Horoscopes, Magic, Divination How to Cast a Love Spell on a Guy? Guide for Guys...
- F Family and Home How to Properly Use a Water Level?...
- L Legal consultation What Documents Are Required for a Russian Passport?...
- H Health and Medicine How to Treat Styes: Causes, Symptoms, and Home Remedies...
- F Family and Home Protect Your Home or Apartment from Pesky Ants...
Answers on questions: Business
- B Business Bramble Corp. received $93000 in cash and a used computer with a fair value of $348000 from Blossom Company for Bramble Corp. s existing computer having a fair value of $441000 and...
- B Business Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money in a lump sum or in a series of payments over time. If you pick the lump sum payout,...
- B Business Assume that a hypothetical economy with an MPC of 0.75 is experiencing a severe recession. Instructions: In part a, round your answers to 1 decimal place. Enter your answers as a positive...
- B Business Assume the following information from a schedule of cost of goods manufactured: Cost of goods manufactured $ 158,000 Beginning work in process inventory $ 25,900 Direct materials used...
- B Business Collin is a full-time exempt employee in Juneau, Alaska, who earns $142,200 annually and has not yet reached the Social Security wage base. He is single with 1 withholding allowance...
- B Business Evaluate 3|-3| A.-6 B.6 C.9 D.-9...
- M Mathematics What is the factored form of the expression k^2 - 9h^2...
- E English Read the excerpt from chapter 3 of the strange case of dr. jekyll and mr. hyde. you know i never approved of it,” pursued utterson, ruthlessly disregarding the fresh topic. my will?...
- H History How did the battle of saratoga mark a turning point in the war? a. it forced burgoyne to retreat to albany, new york, where american forces would launch a surprise attack. b. it convinced...
- M Mathematics What is 0.258 rounded to the nearest whole number...
Ответ:
C. -0.33
Explanation:
Elasticity is a microeconomic concept that aims to measure the sensitivity of demand in the face of price changes. To calculate the price elasticity of demand, a formula is used that divides the observed change in quantity (Q) by the change in price (P).
Elasticity = ▲ Q / ▲ P
We know that the price change was 15% = 0.15
We know that the change in quantity was -5% = -0.05
So:
Elasticity = -0.05 / 0.15 = -0.33
Plus: when the value of elasticity is less than 1, we say that demand is inelastic - little price sensitive. When elasticity is greater than 1, we say that demand is elastic (price sensitive).
In this case, the demand for haircutting is inelastic.
Ответ:
oh my god.
<_>