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 increase the number of daily haircuts provided from 20 to 25. When the $22 market price remains unchanged for several weeks and all other things remain equal as well, the barbership hires additional employees and provides 40 haircuts per day. What is the short-run price elasticity of supply? I got this it is .38 What is the long run price elasticity of supply?
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 increase the number of daily haircuts provided from 20 to 25. When the $22 market price remains unchanged for several weeks and all other things remain equal as well, the barbership hires additional employees and provides 40 haircuts per day. What is the short-run price elasticity of supply? I got this it is .38 What is the long run price elasticity of supply?
Chapter3: Market Demand And Supply
Section: Chapter Questions
Problem 6SQ
Related questions
Question
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 increase the number of daily haircuts provided from 20 to 25. When the $22 market price remains unchanged for several weeks and all other things remain equal as well, the barbership hires additional employees and provides 40 haircuts per day.
What is the short-run price elasticity of supply? I got this it is .38
What is the long run price elasticity of supply?
Expert Solution
Step 1
Price elasticity of supply is a measurement of the supply of goods and services with the change of its market prices.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning