Why Would We Be Likely to Observe Dentists Engaging in Price

question 240

Multiple Choice

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.

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Definitions:

Output

The quantity of goods or services produced within a given time frame by a firm, sector, or country.

Equilibrium Price

The market value at which there's a perfect match between quantity of goods available and quantity desired by buyers.

Cockatoos

A type of large, often colorful and noisy parrot native to Australia and surrounding islands.

Smuggled

Refers to the act of moving goods illegally into or out of a country, bypassing customs regulations and taxes.