Multiple Choice
Butch's Barber Shop knows that it faces an elasticity of demand equal to 3.0 over the relevant range of its demand curve. A 1% increase in its price will do what to the number of haircuts demanded from Butch's Barber Shop?
A) It will increase by 0.33%
B) It will increase by 3.0%
C) It will decrease by 0.33%
D) It will decrease by 3.0%
Correct Answer:
Verified
Correct Answer:
Verified
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