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UNO [17]
2 years ago
7

Haircuts are an example of inelastic supplu true or false

History
1 answer:
mr Goodwill [35]2 years ago
7 0

Answer: False

Explanation:

The elasticity of Supply refers to how each supplier can respond to a change in price by changing how much he produces. If a business can´t change its output level quickly, the supply is inelastic.

A company that provides haircuts is an example of a highly elastic supply because haircut suppliers can easily expand or reduce production.

An increase in the price of haircuts can lead to an increase in the quantity supplied, even in the short term. If the price of haircuts rises, hair salons can quickly hire new personnel or extend the working hours, and new salons could open.

And, in the case of a drop in the price of haircuts, they can reduce the working hours, and some will leave the market for a job somewhere else, so the supply can also fall quickly.

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