Lauren Hanrahan Writing Assignment

Lauren Hanrahan Writing Assignment - change in demand, and...

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Lauren Hanrahan ECO 211-10 Due 2/17/11 Writing Assignment While fulfilling my daily routine of complaining how hard it is to be a woman, it occurred to me that women have to pay much more for certain goods and services than men. Take haircuts for example. How are hair salons able to get away with charging a much higher price for a woman’s haircut than for a man? This issue relates to economics in a variety of ways. It is no doubt that most women care more about their appearances than men. Opportunity cost is involved in this issue. Opportunity cost is what one must give up to obtain something else. As a woman, as pathetic as it sounds, I would give up dinner to get my hair done. A man would say no such thing. A woman’s opportunity cost for a haircut is much higher than a man’s. Quite possibly, women put a much higher value on haircuts as compared to men. This overcharging to women is closely integrated with price elasticity. Elasticity measures how much one variable responds to a change in another variable. Something is elastic when a change in price causes a
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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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Lauren Hanrahan Writing Assignment - change in demand, and...

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