A state law in California makes it illegal for businesses to charge men and women different prices

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A state law in California makes it illegal for businesses to charge men and women different prices for dry cleaning, laundry, tailoring, or hair grooming. The state legislator who introduced the law did so after a dry cleaner charged her more to have her shirts dry cleaned than to have her husband's shirts dry cleaned. According to a newspaper article, the owner of the dry cleaner told the legislator that his costs for cleaning women's shirts were higher because he had to iron them by hand rather than use an automatic press. The law proved difficult to enforce, with many dry cleaners continuing to ignore it years after it was passed.
a. Was the dry cleaner practicing price discrimination, as defined in this chapter? Briefly explain.
Price and cost 12 10 4 Marginal cost Demand in MRMarket Market 1 10 20 30 40 50 Quantity sold in Market 1 60 2.

b. Do you support laws like this one? Briefly explain.

Price and cost 12- 10 Marginal cost Demand in MRMarke Market 2 90 Quantity sold in Market 2 10 20 30 40 50 60 70 80 100
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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