Daffy’s is a pet care company that recently increased the average price of its services by 5%. As a result, the number of customers dropped by 4%. Based on this information, what is the price elasticity of demand for services at Daffy’s? How will this 5% increase of the average price of services impact total revenue at Daffy’s?
Daffy’s is a pet care company that recently increased the average price of its services by 5%. As a result, the number of customers dropped by 4%. Based on this information, what is the price
Buffy’s, a pet adoption company, opens up right next door to Daffy’s. How will this likely impact the demand for services at Daffy’s?
Bufasthar, another pet care company in the area that competes with Daffy’s decided to increase the average price of its services by 3%. How will this decision likely impact the demand for services at Daffy’s?
Assume that the average disposable income in the area in which it operates decreased by 4% over the last year. As a result, the number of customers at Daffy’s decreased by 3%. Based on this information, what is the income elasticity of demand for services at Daffy’s? Are pet care services at Daffy’s considered normal goods?
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