Haircuts for men are often cheaper than haircuts for women, even when they are offered by the same stylist. Why might this be price discrimination?
A) Everyone has the same demand for haircuts.
B) The marginal cost of supplying a haircut may be lower for male than for female customers, and haircutting is a competitive industry with few fixed costs.
C) Stylists are misogynists.
D) Demand for haircuts for women might be more inelastic than demand for haircuts for men, and haircuts are impossible to arbitrage.
Correct Answer:
Verified
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