A local dentist provides a deep discount for dental care to his elderly patients; a 10% discount to the uninsured patients; but is able to charge substantially more than "usual, customary and reasonable charges" to all other patients. It is an example of price discrimination and is an informal way for patients in wealthier circumstances to subsidize patients with less financial resources.

Question

Quizplus · Accepted Answer

This scenario is an example of price discrimination because the dentist charges different prices to different groups of patients based on their financial situation, allowing wealthier patients to indirectly subsidize the care of those with less financial means.

A Local Dentist Provides a Deep Discount for Dental Care