Use the Information Below to Answer the Following Questions

question 18

Multiple Choice

Use the information below to answer the following questions.
Jan runs a successful hairdressing salon in the CBD. The type of costs incurred in providing services to clients are:
(i) hairdressers' salaries
(ii) shampoo and conditioner (no individual records kept of usage)
(iii) colour and perm solutions (individual records kept of usage per client)
(iv) electricity and gas
(v) depreciation of equipment
-Refer to the information above. The direct costs incurred in providing a perm to a client would be:

• A) hairdresser salary.
• B) all costs mentioned above.
• C) hairdresser salary, shampoo, and conditioner.
• D) hairdresser salary, colour and perm solution.

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Definitions:

Necessity

An essential good or service required for basic survival or societal functioning.

Elastic Demand

describes a market situation where the demand for a product significantly changes in response to changes in its price.

Inelastic Demand

A situation where the quantity demanded of a good or service changes little when its price changes.

Movie Theaters

Venues specifically designed for the exhibition of films to the public, where viewers watch movies on large screens.