The demand curve for haircuts

Assignment Help Business Economics

Reference no: EM13833193

The demand curve for haircuts at Terry Bernard's Hair Design is:

P=20-0.20Q

Where Q is the number of cuts per week and P is the price of a haircut. Terry is considering raising her price above the current price of $15. Terry is unwilling to raise price if the price hike will cause revenues to fall.

a) Should Terry raise the price of haircuts above $15? Why or why not?

b) Suppose demand for Terry's haircuts increases to P=40-0.40Q. At a price of $15, should Terry raise the price of her haircuts? Why or why not?

Please explain how?

P=20-0.20Q

Q=100-5P (where does the 100 come from?)

Reference no: EM13833193

Questions Cloud

Elements of the trade cycle as major bullet points : We know that Keynes and Minsky both had a multipoint description of the trade, or business, cycle with Minsky being more detailed than Keynes. Using Keynes' elements of the trade cycle as major bullet points, as-sign Minsky's elements of the business..

What kind of analysis would you carry out : What are the problems facing Jason Mah and the Cafe D. Pownd - what are Mah's constraints and construct a process-flow diagram for the Café D. Pownd.

Businesses will undertake all investment projects : According to the Keynesian view “Businesses will undertake all investment projects for which the expected rate of profit equals or exceeds the interest rate.” Explain what this means.

Explain the premium for taking on risk : Shortcomings of the dividend pricing models suggest that we need a pricing model that is more inclusive than the dividend models and that provides expected returns for companies based on aspects besides their historical dividend patterns.

The demand curve for haircuts : The demand curve for haircuts at Terry Bernard's Hair Design is: Where Q is the number of cuts per week and P is the price of a haircut. Terry is considering raising her price above the current price of $15. Terry is unwilling to raise price if the p..

Monopoly-monopolistic competition and oligopoly : Create graphs and tables to illustrate costs and revenues for firms in different market structures. You have learned about the market structures of pure competition, monopoly, monopolistic competition, and oligopoly. In this assignment, you will appl..

Final jeopardy-relationship between mankind and technology : In "Final Jeopardy" (pp. 234-242), Stephen Baker expresses an interesting look at the way technology, especially in terms of machines, could dramatically change the relationship between mankind and technology—not just helping us to locate information..

What issues might limit the desirability of this approach : Which of these suggestions would be most effective and reliable IF the Boeing 737were still in the Design phase of its life cycle? What issues might limit the effectiveness/desirability of this approach as a total solution?

Calculate the inflation rates for the years ended : Calculate the inflation rates for the years ended June 2013 and June 2014. Explain how the inflation rate changed in 2014. What does it indicate on the price level?

User Account

All Pages