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? 0.05 O 0.10 O 0.15 O 3.0

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? 0.05 O 0.10 O 0.15 O 3.0

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter5: Price Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 18SQ

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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?
O 0.05
0.10
0.15
O 3.0

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