Question
Rafael's Barber Shop knows that a 5 percent decrease in the price of its haircuts results in a 15 percent increase in the number of
Rafael's Barber Shop knows that a 5 percent decrease in the price of its haircuts results in a 15 percent increase in the number of haircuts purchased. What is the elasticity of demand facing Rafael's Barber Shop?
a.0.15
b.0.05
c.3.0
d.0.10
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
