Doctors routinely ask patients for personal information such as occupation, employer, home address, and insurance coverage.

Answer these questions:

1. How do the following factors affect the scope for price discrimination in medical services?

• Doctors treat patients on an individual basis, and it is physically impossible to transfer medical treatment from one person to another.
• Characteristics such as occupation and home address are quite fixed

2. Explain how, if doctors use price discrimination, they can treat more patients than if they use uniform pricing.