You are the owner of a nail salon your female customers


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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Econometrics: You are the owner of a nail salon your female customers
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