Why would we be likely to observe dentists engaging in price discrimination?
A)Dental care is expensive.
B)All dentists are basically alike.
C)It is very important to exercise care in choosing a dentist.
D)It is nearly impossible to resell the services of a dentist.
E)The demand for dentists is very inelastic.

Question

Quizplus · Accepted Answer

Price discrimination is more feasible when the service or product cannot be resold, as it prevents arbitrage. Dental services are non-transferable and cannot be resold, making it easier for dentists to charge different prices to different customers.

Why Would We Be Likely to Observe Dentists Engaging in Price