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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 considering raising her price above the current price of $15. Terry is unwilling to raise price if price hike will cause revenues to fall.Suppose demand for Terry’s haircuts increase to P = 40 – 0.40Q. At a price of $15, should Terry raise the price of her Haircuts? Why or why not?
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 considering raising her price above…
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