An owner of a local salon realized that by decreasing the prices that he charges for haircuts,
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Question:
An owner of a local salon realized that by decreasing the prices that he charges for haircuts, his profithas increased. This implies that
A. The demand for his haircuts was unitary elastic (e = 1)
B. The demand for his haircuts was inelastic
C. The demand for his haircuts was elastic
D. Not enough information is provided to determine the character of demand before the price change.
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