In the following situation, indicate whether the physician's discriminatory action is taste-based or statistical. A physician believes that Hispanic patients are less likely to follow through with an expensive therapeutic regimen that leads to major side effects, so he does not ever prescribe it for them. Taste-based Statistical

In the following situation, indicate whether the physician's discriminatory action is taste-based or statistical. A physician believes that Hispanic patients are less likely to follow through with an expensive therapeutic regimen that leads to major side effects, so he does not ever prescribe it for them. Taste-based Statistical

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.

Question

In the following situation, indicate whether the physician's discriminatory action is
taste-based or statistical.
A physician believes that Hispanic patients are less likely to follow through with an
expensive therapeutic regimen that leads to major side effects, so he does not ever
prescribe it for them.
Taste-based
Statistical

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