Question: Hilda's Hair Hysteria earned $3,750 in total revenue last month when it sold 125 haircuts. This month it earned $3, 600 in total revenue when it sold 90 haircuts. The price elasticity of demand for Hilda's Hair Hysteria is: A. 0.33. B. 7.98. C. 0.88. D. 1.14.

Question: Hilda's Hair Hysteria earned $3,750 in total revenue last month when it sold 125 haircuts. This month it earned $3, 600 in total revenue when it sold 90 haircuts. The price elasticity of demand for Hilda's Hair Hysteria is: A. 0.33. B. 7.98. C. 0.88. D. 1.14.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

When the price of kittens was $20 each, the pet shop sold 20 per month. When they raised the price to $30 each, they sold 14 per month. What is the elasticity of demand for kittens? 1.66 Another value (not listed) 0.88 0.66 1.36
1. As a transit planner for the city of Miami, you must predict how many people ride the Miami Metrorail and how much money is generated from train fares. According to a recent study, the short-run elasticity of demand for Metrorail is 0.62 and the long- run elasticity is 1.59. The current ridership is 50,000 people per day. Suppose the city commission decides to increase fares by 10%. Predict the changes in train ridership over a one-month period and a five-year period. ANS: b. Over the one-month period, will total revenue increase or decrease? What will happen in the five-year period? ANS
I need help with a a) What is the price elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer is negative, please put a negative sign in the front. If your answer is a decimal number between -1 and 1, for example, -0.523, please do not omit the zero (meaning that you should have -0.523 in the answer box, not -.523). b) What is the cross-price elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer is negative, please put a negative sign in the front. If your answer is a decimal number between -1 and 1, for example, -0.523, please do not omit the zero (meaning that you should have -0.523 in the answer box, not -.523). c) What is the income elasticity of demand for hamburger buns? Please provide a numerical answer. If your answer is decimal, please include all decimal digits. If your answer…
Explain all options, please.
If the price of a movie rental is $4.00, Mary will rent 5 movies in a month. If the price of a movie rental is $3.00, Mary will rent 8 movies in a month. Mary’s price elasticity of demand for movie rentals is
Suppose that when income increases from $2900 to $3250, quantity demanded changes from 210 to 270. Using the mid-point elasticity approach, calculate income elasticity.
The price of chicken breast rises from $3.50 per pound to $4.25 per pound. In response to this price change, the quantity demanded for chicken breast falls by 30%. Based on the midpoint method, what is the absolute value of the price elasticity of demand for chicken breast? a. 0.83 b. –0.83 c. 1.55 d. –1.55
Use the midpoint method to compute the price elasticity on D1. $10 в $5 A D1 D2 80 90 100 The percent change in quantity is:
Question: Hilda's Hair Hysteria earned $3, 750 in total revenue last month when it sold 125 haircuts. This month it earned $3,600 in total revenue when it sold 90 haircuts. The price elasticity of demand for Hilda's Hair Hysteria is: A. 0.33. B. 7.98. C. 0.88. D. 1.14.
The price of gasoline is usually a lot higher at gas stations located very close to a highway than in towns located a few miles away. List two reasons (determinants of elasticity) that explain this:
Diamond Sisters (a monopolist in the sale of diamonds) has decided to increase the price of their industrial-grade diamonds by 10%. You know from past studies that the elasticity of demand for industrial-grade diamonds is -.8. What would you predict would happen to the quantity of industrial-grade diamonds sold, and to the total expenditure on said diamonds?