-Figure 5-1 Shows the Prices of Two Services Offered by Earl's

question 120

Multiple Choice

-Figure 5-1 shows the prices of two services offered by Earl's Barber Shop and the resulting quantities demanded by customers.Suppose that the current price for a haircut is $20 and the current price for a manicure is $12,and Earl has a sale of $4 off the price of either a haircut or a manicure.In this example,

• A)haircuts have the smaller absolute change in quantity demanded and the more elastic demand
• B)Earl can earn more revenue from manicures at the lower price
• C)Earl should decrease the number of spaces in his shop allocated to haircuts
• D)the demand for haircuts is unitary elastic
• E)the demand for haircuts is inelastic

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Definitions:

Companionate

Relating to or denoting a type of love characterized by deep affection and commitment.

Approachability Cues

Nonverbal signs or behaviors that indicate a person is open to interaction or conversation.

Uncertainty Reduction

The process of lessening ambiguity in communicating, often by gathering more information about others.

Social Support

The assistance and protection provided by others, especially through social relationships and networks.