Village, a small isolated town, has one doctor. For a 30-minute consultation, the doctor charges a rich person twice as much as a poor person.

1. Does the doctor practice price discrimination? Is the doctor using resources efficiently? Does the doctor’s pricing scheme redistribute consumer surplus? If so, explain how.

2. If the doctor decided to charge everyone the maximum price that he or she would be willing to pay, what would be the consumer surplus? Would the market for medical service in Village be efficient?