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Unformatted text preview: change in demand, and vice versa when inelastic. Hair cuts are much more inelastic to women. I feel women would respond much less to a change in price. For example, if the price of a haircut were to rise ten dollars, men would surely cut down on the amount of haircuts they get. They would find substitutes such as cutting their own hair, or simply not receiving one at all. Inversely, a womans buying patterns would most likely not change. To an extent, the price of a haircut has little significance as to whether or not the woman will still purchase a haircut before she starts searching for substitutes. When a good is inelastic, a strategic way to increase profit is to increase the price. Hair cutting services have to tend to both men and women, and the difference in both genders value of a haircut. This is how hair salons get away with charging a significantly higher price to women for haircuts, than to men....
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- Spring '09
- Managerial Accounting