Posted by tina on .
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 condering raising her price above the current price of $15. Terry is unwilling to raise price if the price hike will cause revenues to fall. Should Terry raise the price of haircuts above $15 Why or why not? 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?"