February 9, 2020
Do you want to be “Instagram ready”?
If you do, then you might be part of the growing number who are leaving the mascara market and moving to a low-maintenance and no-hassle look. CNN Business reports that while mascara is becoming less popular, the lash-extension market is booming.
What’s happening?
We can consider the changes in the lash-extension market as changes in the equilibrium quantity and equilibrium price. When lash-extensions were introduced in the United States, approximately 20 years ago, customers paid $400 for a set of lashes. Now the price is $100. Years ago, lash extensions were primarily worn by Hollywood stars. Today millions of people buy them. Changes in demand and supply have changed the equilibrium.
Changes in Supply
The supply of lash-extension services is increasing for two reasons. Technological advances in the glue used for application and in the material used to manufacture the lashes increases supply. And the number of salons that offer lash-extension services is increasing.
Changes in Demand
The demand for lash-extension services is influenced by two things.
First, the craving for long, luscious lashes with low-maintenance and no-hassle has increased the demand for lash-extension services. Preferences have moved from daily mascara application to the ease of monthly appointments for lash-extension application.
Second, rising incomes over the past 20 years have increased the demand for lash-extension services. Lash-extension services are a normal good.
Changes in Equilibrium
The supply of lash-extension services is increasing and the demand for lash-extension services is increasing, so we know that the equilibrium quantity is increasing. We also know that the price is falling, so the supply is increasing by more than the demand is increasing.
Let’s look at the graph.
Now take this short quiz to check that you understand what you have just read.
Multiple Choice Quiz—Lash-extensions squeeze out mascara