An increase in the market price of men's haircuts, from $12 per haircut to $22 per haircut, initially causes a local barbershop to have its employees work overtime to ncrease the number of daily haircuts provided from 25 to 30. When the $22 market price remains unchanged for several woeks and all other things remain equal as well, the barbershop hires additional employees and provides 45 haircuts per day. What is the short-run price elasticity of supply? (Your answer should have two decimal places.)

An increase in the market price of men's haircuts, from $12 per haircut to $22 per haircut, initially causes a local barbershop to have its employees work overtime to ncrease the number of daily haircuts provided from 25 to 30. When the $22 market price remains unchanged for several woeks and all other things remain equal as well, the barbershop hires additional employees and provides 45 haircuts per day. What is the short-run price elasticity of supply? (Your answer should have two decimal places.)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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