Elasticity of supply for haircuts
1) If the price elasticity of demand for used cars priced between $3,000 and $5,000 is 1.2 (using the mid-point method), what will be the percent change in quantity demanded when the price of a used car falls from $5,000 to $3,000?
2) Suppose that when the price of peanut butter rises from $2 to $3 per jar, the quantity of jelly purchased falls from 20 million jars to 15 million jars.
Instructions: Round your answer to three decimal places and include a negative sign if appropriate.
The cross-price elasticity of demand between peanut butter and jelly using the midpoint method is_______.
3) If the price of a haircut is $15, the number of haircuts provided is 100. If the price rises to $30 per haircut, barbers will work much longer hours, and the supply of haircuts will increase to 300.
Instructions: Round your answers to two decimal places.
The price elasticity of supply for haircuts between $15 and $30 using the mid-point method is _______.