In the hair salon industry, there are salon services and retail products that constitute production. Because services generate the majority of salon business, this is what I will consider the bottom line. Possible services include haircuts, coloring, perms, etc. Many factors can affect the supply and demand of these services. People's income is an important factor. When the economy is down and people make less money or don't have jobs, "extras" like highlights and hairstyles will be in less demand. Customer tastes and preferences are another element that impacts the demand for services (supply and demand). Perms are no longer as in demand as they were in the 80s, as people's tastes change as styles evolve over the years. Quality of service is also a factor (supply and demand). If the customer believes that something is of high value, then the demand will be higher. In addition, the availability of the service plays an important role (supply and demand). If the service is offered when the customer needs it, then demand will be higher. Things that can affect the supply of salon services are things like production costs (which include wages and material costs) and the number of other businesses that provide the same services (supply and demand) . The supply of products necessary to perform the services may decrease due to an increase in production costs for the producer of the product. I would say that the demand for hair salon services is elastic because there is no shortage of hair salons. there is a lot of competition. Customers have the luxury of being picky about which salon they choose to go to. With nearly 500,000 stores in the United States...... middle of paper ...... regarding marketing strategies. Small Business - Chron.com. Internet. September 4, 2011. .Muender, Melissa. “Online conferences”. Online Division of the Art Institute of Pittsburgh. September 4, 2011. “Supply and Demand-Cost, Factors Impacting Supply and Demand, Elasticity of Supply and Demand.” Business Encyclopedia reference for small business biographies, business plans, and the Encyclopedia of American Industries. Internet. August 28, 2011. “Minnesota Rule 2105.” Minnesota Legislature - Office of the Reviser of Statutes. Internet. September 10, 2011. “What is a non-compete agreement?” » WiseGEEK: clear answers to common questions. Internet. September 10. 2011. .