If interest rates rise, Group of answer choices households are willing to borrow more money because their rates of return have increased. foreign entities are willing to borrow more money because their rates of return have increased. firms are willing to borrow less money because their costs of borrowing has increased. firms are willing to borrow more money because their rates of return have increased. it must mean that inflation has decreased because nominal rates have increased.

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.)