Suppose jill johnson operates her pizza restaurant in a building she owns in the center of the city. similar buildings in the neighborhood rent for $4,000 per month. jill is considering selling her building and renting space in the suburbs for $3,000 per month. jill decides not to make the move. she reasons, "i would like to have a restaurant in the suburbs, but i pay no rent for my restaurant now, and i don't want to see my costs rise by $3,000 per month." what do you think of jill's reasoning?

An increase in the market price of men's haircuts, from $16 per haircut to $26 per haircut, initially causes a local barbershop to have its employees work overtime to increase the number of daily haircuts provided from 20 to 25. when the $26 market price remains unchanged for several weeks and all other things remain equal as well, the barbershop hires additional employees and provides 40 haircuts per day. what is the short-run price elasticity of supply? nothing (your answer should have two decimal places.) what is the long-run price elasticity of supply? nothing (your answer should have two decimal places.)