The price of haircuts increased by 8%, and the quantity demanded for haircuts decreased by 4%. From this we can conclude that the demand for haircuts is: Select one: a. price elastic. b. price unit elastic. c. price inelastic. d. cross price inelastic.

The price of haircuts increased by 8%, and the quantity demanded for haircuts decreased by 4%. From this we can conclude that the demand for haircuts is: Select one: a. price elastic. b. price unit elastic. c. price inelastic. d. cross price inelastic.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Give typing answer with explanation and conclusion Suppose when the price of ice cream is $2 there…

A: Price elasticity of demand is a method that shows us how much the economic agent is responsive to…

Q: The price of a good rises from $8 to $12,and the quantity demanded falls from 110 to 90…

A: Term: Quantity demanded: The aggregate value of products or services required by customers during a…

Q: The price of organic apples rises and apple growers find that their revenue decreases . Is the…

A: Elastic demand refers to the percentage change in quantity demanded is higher than the percentage…

Q: As the price of a box of pizza increases from $18 to $22, the quantity of cheese burgers increases…

A: Cross-price elasticity refers to the percentage change in the quantity of one good with respect to…

Q: Why should you use the mid-point method to calculate the price elasticity ofdemand?

A: Answer - Elasticity of Demand : - It is the tool to measure the change in the quantity purchased due…

Q: #H

A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…

Q: At the conclusion of a marketing study for the POW! Patrol mobile game, you've settled on an optimal…

A: The monetary gain or benefit consumers receive when they can purchase a good or service for a price…

Q: Which of the following statements is the best interpretation of the coefficient of the Price…

A: The price elasticity of demand measures the percentage change in quantity demanded with respect to a…

Q: The price of haircuts increased by 8%, and the quantity demanded for haircuts decreased by 4%. From…

A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…

Q: PRICE (Dollars per pound) 2 T O Demand 10 20 30 40 50 60 70 BO QUANTITY (Thousands of pounds of…

A: The price elasticity is calculated as the percentage change in quantity demanded divided by the…

Q: he price of a good falls from $12 to $8, and the quantity falls from 110 to 90 units. Calculate the…

A: The worth physical property of demand is Associate in Nursing economic data point that measures the…

Q: Use the following estimates of the price elasticity of demand (Ed), income elasticity (Ei and cross…

A: Price elasticity of demand:It refers to the responsiveness or the effect of prices on the demand for…

Q: PRICE (Dollars per pound) ( 2 10 Demand 20 30 QUANTITY (Thousands of pounds of tomatoes) 50 60 70 80…

A: Elasticity of demand indicates that how much change in price leads to change in demand.This is…

Q: The price elasticity of demand along a linear is equal to the rate of change of the slope. O is…

A: Price elasticity of demand measures the responsivness of change in quantity demanded to change in…

Q: Which of the following pairs of goods is most likely to have a positive cross-price elasticity? A)…

A: Cross price elasticity refers to the change in demand for one good changes price of other…

Q: Use a midpoint (averages) formula to calculate cross-price elasticities below for goods A, B, and C,…

A: Cross-price elasticity estimates how touchy the interest of an item is over a shift of a comparing…

Q: 6.1. Suppose the demand schedule for CDs is as follows: (marks:10) Price ($) QD of CDs 10 12 300 270…

A: A good's price elasticity of demand is a measure of how sensitive the quantity demanded is to its…

Q: A 4.28 percent increase in the price of tea causes a 9.84 percent increase in the demand for coffee.…

A: Price elasticity of demand refers to the responsiveness of quantity demanded to a change in the…

Q: As observed in a certain appliance store when the price of electric fan increased from 1000 to 1200…

A: Cross-price elasticity measures the responsiveness of change in demand of one good to change in the…

Q: Month 1 Month 2 Month 3 Quantity of bourbon (QB) 10 7 8 Quantity of fried chicken (Qc) 20 18 32…

A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…

Q: A price change leads to a change in changes, then we observe a shift in A) demand, demand B) demand,…

A: The demand curve shows an inverse relationship between price and quantity demanded, this is due to…

Q: Suppose we find that the price elasticity of demand for a product Is 1.25 when Its price Is…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: A 5 percent increase in the price of good C leads to a 20 percent decrease in the quantity demanded…

A: Cross price elasticity= percent change in price in goods D/ percent change in price in goods C…

Q: The price of oranges rises by 3 percent and the quantity of oranges demanded decreases by 3 percent.…

A: Price elasticity of demand is a measure of how the quantity demanded of a good or service changes in…

Q: Suppose the price of a concert ticket rises from $20.00 to $25.00 and the number of tickets sold…

A: Answer to the question is given by:

Q: Q1.) Use the mid-point method to calculate your price elasticity of demand as the price of an apple…

A: Price elasticity of demand refers to the percentage change in quantity demanded due to the…

Q: if the quantity demanded of good A has increased from 8 to 18 units due to the decrease in the price…

A: The cross elasticity of demand is an economic concept that assesses how responsive the quantity…

Q: Suppose a 5% increase in income causes a 2% increase in the quantity demanded of tacos. The price of…

A: Income Elasticity of demand = (% Change in Quantity demand) / (% Change in income) Income…

Q: When the price of gadgets rises by 5%, the demand for widgets falls by 20%. The cross price…

A: Price elasticity refers to a measure that seeks to understand how a change in the quantity demanded…

Q: If the quantity demanded of good X has increased from 10 to 18 units due to the increase in the…

A: Elasticity measures the responsiveness of quantity demanded with respect to changes in price.

Q: A 10 percent decrease in the price of golf clubs leads to a 20 percent increase in the quantity of…

A: Here, given information is: Change in price of golf club: 10 percent (decrease) Change in quantity…

Q: a) The following information shows quantity demanded when prices of bread was changed from P3 to P4:…

A: Elasticity estimates the percentage change of one economic variable in light of a percentage change…

Q: A local sports store had been selling an average of 187 jogging outfits per month over 6 months at…

A: Elasticity of demand depicts how much consumer responds with the change in the price level.

Question

The price of haircuts increased by 8%, and the quantity demanded for haircuts decreased by 4%. From this we can conclude that the demand for haircuts is:

Select one:

price elastic.

price unit elastic.

price inelastic.

cross price inelastic.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

According to the U.S. Department of Energy, the average price of gasoline in the U.S. fell by 14% in 2015. The number of hybrid electric vehicles (HEV) sold in the U.S. fell by 36% in the same year. Calculate the cross-price elasticity of demand for HEVs and gasoline. Round answer to one place after the decimal.
calculate the cross price elastocoty of demand, if there is 5% change in the demand of a good when price of another good is change by 10%.
Solve the attachment
MUx = 2X, MUy = 4Y, PX = 1, PY = 2, and I =4, calculate the cross-price elasticity of demand for good X and discuss its relationship with the other good based on your computation
We would expect the cross elasticity of demand between Little Caesar's Pizza and Jet's Pizza to be: Group of answer choices positive, indicating normal goods. positive, indicating inferior goods. positive, indicating substitute goods. negative, indicating substitute goods..
Due to 5 percent fall in the price of food, it's demand rises by 12 percent. Find the price elasticity of demand and say demand is elastic or inelastic.
Use the midpoint method to compute the price elasticity on D1. P $10 B $5 A D1 D2 80 90 100 From point A to point B, the price elasticity is:
Using the midpoint method, the price elasticity of demand for a good is computed to be approximately 0.55. Which of the following events is consistent with a 20 percent decrease in the quantity of the good demanded? a. An increase of 11.0 percent in the price of the good b. an increase of 36.36 percent in the price of the good c. An increase in the price of the good from $11.00 to $20.00 d. an Increase in the price of the good from $20 to $31.00
Apple sells 10 million iPhones at $100 each. Apple increases the sale price to $200. Sales decreased to 9 million units. Calculate the product’s elasticity of demand then classify it as inelastic or elastic..
During a recent 30-day period, the Squish restaurant sold 600 Ocean Delights at a price of $6.45. During the next 30-day period, the price was increased to $6.95, and 400 Ocean Delights were sold. Calculate the price elasticity of demand, and indicate if demand is elastic or inelastic multiple question 1, elastic 4.125, elastic 4.125, inelastic 1, inelastic
Considering that hotel users also visit shopping malls and food courts, a professor estimates that in January 2022 there can be upto 18% increase in the price of UAE hotels which will automatically result in a decrease of Dubai gift shopping by 24 percent. Calculate the cross-price elasticity of demand for the projected demand in January 2022 and indicate how the two goods are related.
Please answer The quantity demand for apples has decrease 5%, while the price has increased 7% a) .71 elastic b) 1.4 elastic c) 1.4 inelastic d) .71 inelastic