Figure 16-1 Chantal owns a hairdressing salon which caters to two main groups of customers: residents of "The Chateau," a retirement community,and other residents in the neighborhood.Figure 16-1 shows the demand curves for the residents of the retirement community,labeled Market A,and other residents in the neighborhood,labeled Market B.The demand curves are not identical.
-Refer to Figure 16-1.What prices are charged in the two markets?

Question

Figure 16-1  Chantal owns a hairdressing salon which caters to two main groups of customers: residents of "The Chateau," a retirement community,and other residents in the neighborhood.Figure 16-1 shows the demand curves for the residents of the retirement community,labeled Market A,and other residents in the neighborhood,labeled Market B.The demand curves are not identical.
-Refer to Figure 16-1.What prices are charged in the two markets?

Quizplus · Accepted Answer

From the demand curves, we can see that the price charged in Market A is $10 and the price charged in Market B is $15. Therefore, the best choice is B.

Figure 16-1 Chantal Owns a Hairdressing Salon Which Caters