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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
You are the owner of a nail salon. Your female customer’s price elasticity of demand for manicures is –2.5; your male customer’s price elasticity of demand for manicures is –1.2. The marginal cost of manicuring a customer’s nails is $12.
a. If you segment the market by gender, what price should you charge women? What price should you charge men?
b. Explain intuitively why you should charge each group a different price.
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