Posted by Booker Perry on .
1)A plastic surgeon thinks she can make more revenue by lowering the price of cosmetic surgery. She lowers her hourly rate from $600 to $550. If cosmetic surgery is an elastic service, is she correct in her assumption?
2)How would the elasticity of supply relate to the extremely high prices for paintings produced by painters from centuries before now.
1) Yes(not sure)
2) I need help with this.
If it is elastic, then demand will increase at the lower price.
b. For those old paintings, supply cannot increase, the painter is kuput. The supply is inelastic.