A company you work at realized through market research, it is able to maintain demand and charge$20more for a pink variation of a bicycle helmet as opposed to a blue variation.Both helmets cost the same amount to manufacture.Your boss asks your input on whether the company should charge a higher price for the pink helmet.

To gain insight you do some research andyou come across a recent report by the GAO.The report found that about 50% of items evaluated,such as deodorant,shaving cream,razors,perfumes,and commercial products,cost more when they were marketed to women. This is sometimes referred to as a'pink tax' wheregender-based pricing differences are legal.The GAO could not conclude that bias was to blame for the price differences.However,you also find additional information that suggests consumers have petitioned for laws that penalize retailers and manufacturers for charging higher prices for the women's variation of products when there is no cost-based justification.Further,you learn that consumer activists are publicly shaming brands that charge higher prices for certain population segments.

A.Should the Company charge$20more for the pink helmet?Why or why not?

B.One of your coworkers makes the argument that the higher price on the pink helmet makes sense because it is an example of value-based pricing.Her argument is that a consumer who does not want to pay the higher price for the pink helmet can buy the blue version.Respond to her argument.