Alice’s hair salon increased its total monthly revenue from RM10,000 to RM15,000 when it raised the price of hair cut from RM50 to RM60. a. Calculate the price elasticity of demand for Alice’s hair salon. b. Suppose you are the hair salon’s consultant, if Alice wish to increase her revenue, would you advise her to continue with her existing plan?
Alice’s hair salon increased its total monthly revenue from RM10,000 to RM15,000 when it raised the price of hair cut from RM50 to RM60. a. Calculate the price elasticity of demand for Alice’s hair salon. b. Suppose you are the hair salon’s consultant, if Alice wish to increase her revenue, would you advise her to continue with her existing plan?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Alice’s hair salon increased its total monthly revenue from RM10,000 to RM15,000 when it raised the
a. Calculate the price elasticity of demand for Alice’s hair salon.
b. Suppose you are the hair salon’s consultant, if Alice wish to increase her revenue, would you advise her to continue with her existing plan?
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