Price Discrimination Can Occur Only If the Elasticities of Demand

question 162

True/False

Price discrimination can occur only if the elasticities of demand are the same across different markets.

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Definitions:

Terminally Ill

Referring to a person suffering from a disease that is incurable and expected to lead to death within a short period.

Managed Care

A health care delivery system organized to manage cost, utilization, and quality, often through contracted arrangements with providers.

HMO

Health Maintenance Organization; a medical insurance group that provides health services for a fixed annual fee.

Copayment

A fixed or set amount paid for each healthcare or medical service; the remainder is paid by the health insurance plan. Also called a copay.