Shaina and Mariah Have a Business That Provides Personal Fitness

question 196

Multiple Choice

Shaina and Mariah have a business that provides personal fitness training services. They know that after raising their prices from $50 to $75 per hour, the quantity of hours they spent delivering training services fell from 90 to 80 hours per week. The demand for their services is:

• A)​inelastic, with a price elasticity coefficient greater than one.
• B)​inelastic, with a price elasticity coefficient less than one.
• C)​elastic, with a price elasticity coefficient greater than one.
• D)​elastic, with a price elasticity coefficient less than one.

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Definitions:

Financial Ratios

Metrics derived from a company's financial statements to assess its performance, liquidity, profitability, and other aspects.

Prior Period

A previous accounting time frame used for comparison purposes or to correct errors in financial statements.

Same Industry

Refers to companies and businesses that operate within the same sector or category, offering similar products or services.

Peculiar Conditions

Unique or unusual circumstances that can affect an outcome or situation in specific cases.