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 15-17 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 15-17. Suppose the salon price discriminates. What prices are charged in the two markets?

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices in different markets based on the willingness to pay. The correct prices are $10 in market A and $15 in market B, reflecting different demand elasticities or willingness to pay in each market.

Chantal Owns a Hairdressing Salon Which Caters to Two Main