A doctor charges two different prices for medical services, and ...

[s.tung]

A doctor charges two different prices for medical services, and the price level depends on the patients' income such that wealthy patients are charged more than poorer ones. This pricing scheme represents a form of
 
  A) first-degree price discrimination.
  B) second-degree price discrimination.
  C) third-degree price discrimination.
  D) pricing at each consumer's reservation price.

Question 2

An effective price ceiling causes a loss of
 
  A) producer surplus for certain and possibly consumer surplus as well.
  B) consumer surplus only.
  C) producer surplus only.
  D) consumer surplus for certain and possibly producer surplus as well.
  E) neither producer nor consumer surplus.

[Kimmy]

Answer to Question 1

C

Answer to Question 2

A