Some business owners or service providers offer lower prices to lower income individuals. For example, some dentists offer their services at lower prices to lower income patients.  These sliding fees are often explained as a charitable gesture.  Could the sliding fees also be a profit-maximizing strategy?    Does the type of pricing in part 1 make consumers better off? Explain carefully.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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  1. Some business owners or service providers offer lower prices to lower income individuals. For example, some dentists offer their services at lower prices to lower income patients.  These sliding fees are often explained as a charitable gesture.  Could the sliding fees also be a profit-maximizing strategy?   
  2. Does the type of pricing in part 1 make consumers better off? Explain carefully.  
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