An increase in the market price of men’s haircuts, from $15 per haircut to $25 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 $25 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? ________ (your answer should have two decimal places)
What is the long- run price elasticity of supply? ________ (your answer should have two decimal places)