A doctor charges two different prices for medical services, and the price level depends on the patients' income such that wealthy patients are charged more than poorer ones. This pricing scheme represents a form of
A) first-degree price discrimination.
B) second-degree price discrimination.
C) third-degree price discrimination.
D) pricing at each consumer's reservation price.
C
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Some economists argue that policymakers can use monetary and fiscal policy to reduce the severity of economic fluctuations. What are some things policymakers can do when higher inflation becomes a concern?
Which of the following statements is accurate?
A. Fixed exchange rates greatly constrain a country's ability to pursue an independent monetary policy. B. Fiscal policy is highly effective with fixed exchange rates and unresponsive international capital flows. C. Contractionary monetary policy is effective under a fixed exchange-rate regime. D. Fiscal policy is not effective with fixed exchange rates in an environment of highly responsive international capital flows.