Y5

2. Some consumer groups claim that some hair stylists discriminate against women. These groups argue that a woman pays more than a man even for a similar haircut. In this question you will investigate this claim.

a. Using a graphical model of price discrimination by groups (chapter 17), depict a scenario where a salon could successfully increase profits by using price discrimination. Be sure to explain all elements of your graph(s). In your model, how do the demand curves differ by gender? Do you think this difference is realistic or reflected in your experiences?

b. Interview at least 6 friends (of both genders) to determine how much they pay for a haircut and about how long it takes to get their hair cut. Use this information to determine whether the price per minute for hair styling services differs substantially by gender. Please don't call local salons for prices. There are nearly 200 students in my class and the salon owners don't want to field that many calls.