Microeconomics
Women have continually asserted that they pay more than men for thesame services. It is interesting to explore an article on the subject andanswer questions concerning the microeconomics of the situation. Women claim salons charge them more than their male counterparts.The market that hairdressing salons operate in is the pure capitalismmarket. This market is "a system with private ownership of resources andthe use of prices to coordinate economic activity in free, competitive(ccollege.hccs.cc.tx.us/instru/govecon/Gosselin/tools/tsld013.htm)."Under this system, the operators can charge women more than men, citing thefact that it takes longer to cut and style a woman's hair than a man's.They state there is more labor involved, therefore they charge a higher There are a number of cost conditions which may force salons tocharge higher prices for women's haircuts relative to m
Differences in Cost There are differences in the cost of providing goods and services asa justification for gender pricing. Examples of Demand Elasticities Number of women served in one week- 150 Number of men served in one week- 50 Difference in time of cuts - 15 minutes less per man Total amount of time spent weekly on women customers at an average of45 minutes per customer - 6750 minutes Total amount of time spent weekly on men customers at an average of30 minutes per customer - 1500 minutes Total weekly difference between similar number of men and womencustomers- 50 x 15 = 750 minutes Total weekly difference between men and women customers-6750-1500=5250 minutes Results- Higher cost to women due to increased labor exerted. Differences in Demand Elasticities Differences in demand elasticities may prompt salons to charge higherprices for women's haircuts relative to men's haircuts. However, men generally have shorter hair,and just want to have their hair cut as quickly as possible to achieve anappropriate style. Results- Higher costs for woman's cut due to time and labor. These differencesmay be due to an increase in labor demand by a salon from women's haircuts,resulting in an increase in prices, or market competition between barbersand salons for men's business, forcing the salons to charge a lower fee formen's services. Example of Cost Conditions Time for woman's cut - 45 min. By comparing these serviceson a diagram, the cost differences over time can be determined. Conclusion Women are often charged more for services such as dry cleaning andhaircuts. Women many times have longer hair, which requires additional time to cutand style. Women are conditioned to believe it is important to have theirhair done in a salon, and are willing to spend the time to have their haircut and styled appropriately. Two examples of this are dry cleaningservices and hairdressing. Salons are many times in competition with barbers for men's business,resulting in lower prices for men as a means to earn their business. It is important to understand the reasons this pricediscrimination occurs in order to prevent women from being taken advantageof due to their gender.
Common topics in this essay:
Cost Conditions,
Demand Elasticities,
Elasticities Differences,
Market Women,
Differences Cost,
Conclusion Women,
Introduction Women,
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