You are the owner of a nail salon. Your female customer's price elasticity of demand for manicures is -2.5;
your male customer's price elasticity of demand for manicures is -1.2. The marginal cost of manicuring a customer's nails is $12.
a. If you segment the market by gender, what price should you charge women? What price should you charge men?
b. Explain intuitively why you should charge each group a different price.