Figure 16-3

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 16-3 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 16-3.What prices are charged in the two markets?
A)price in market A = price in market B = $15
B)price in market A = $10; price in market B = $15
C)price in market A = price in market B = $5
D)price in market A = price in market B = $10

Question

Figure 16-3
  
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 16-3 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 16-3.What prices are charged in the two markets?
A)price in market A = price in market B = $15 
B)price in market A = $10; price in market B = $15 
C)price in market A = price in market B = $5 
D)price in market A = price in market B = $10

Quizplus · Accepted Answer

The prices charged in Market A are $10 and in Market B are $15, as shown by the demand curves in figure 16-3. Therefore, the best choice is B, because it correctly identifies the prices charged in each market.

Figure 16-3 Chantal Owns a Hairdressing Salon Which Caters to Two Main