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Bailey's Barber Shop Knows That a 5% Increase in the Price

Question 62

Multiple Choice

Bailey's Barber Shop knows that a 5% increase in the price of their haircuts results in a 15% decrease in the number of haircuts purchased.What is the elasticity of demand facing Bailey's Barber Shop?


A) 0.05
B) 0.10
C) 0.15
D) 0.33
E) 3.0

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