If the price of a haircut is $12, the number of haircuts provided is 100. If...

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If the price of a haircut is $12, the number of haircuts provided is 100. If...

If the price of a haircut is $12, the number of haircuts provided is 100. If the price rises to $25 per haircut, barbers will work much longer hours, and the supply of haircuts will increase to 300.

The price elasticity of supply for haircuts between $12 and $25 using the mid-point method is

business economics

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Answer 1

Answer #1

Brice elasticity of supply - y = 300-100 6300100)/2 25-12 (25+12)/2 200 200 13 1.42 18.5 1.42

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