ECON
posted by Anonymous .
The demand curve for haircuts at Terry’s Hair Design is P=200.20Q
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 $15.00. Terry is unwilling to raise price if the price hike will cause revenues to fall.
a. Should Terry raise the price of haircuts above$15.00? 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?
Respond to this Question
Similar Questions

Econ
The demand for widgets (QX) is given by the following equation: QX = 425PX¡V1.5PW¡V1.25PG+0.8PY+0.1 M where QX= number of units of widgets sold per week PX = the price of widgets = 400 PW = the price of woozles = 50 PG = the price … 
Management accounting
Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him (Andre is not one of them) Eash barber is paid $9,90 per hour and workd a 40hour week and a 50week, regardless of the number … 
Management Accounting
Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him (Andre is not one of them) Each barber is paid $9.90 per hour and works a 40hour week and a 50week year, regardless of the … 
management accounting
Andre has a hair styling business and he has five barbers who each make $9.90 per hour then work 40hours a week and 50weeks a year, the rent and other fixed expenses are $1,750 per month. shampoo is used on all client is .40 per … 
maximizing profit calculus
During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for $10 each and his sales averaged 20 per day. When he increased the price by $1, he found that he lost two sales per day. a. … 
accounting
Andre has asked you to evaluate his business, Andre’s Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40hour week and a 50week year, regardless of … 
economics
) The demand curve for haircuts at Terry barnyards Hair Design is P=200.20Q Where Q is the number of cuts per week and P is the price of a haircut. Terry is considered raising her price above the current price of $15. Terry is unwilling … 
managerial
The demand curve for haircuts at Terry Bernard's Hair Design is P=200.20Q 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 … 
Math
Could someone work this question out so I understand it. Thanks The marginal price dp/dx at x units of demand per week is proportional to the price p. There is no weekly demand at a price of $100 per unit [p(0)=100], and there is a … 
managerial economics
Exercise 1 The marketing manager has estimated the company’s demand curve with the equation P=3000 – 40Q. To develop a deeper understanding of pricing and quantity to be produced, complete the following analyses: 1. Draw the demand …