Merchants that sell goods on credit to low-income customers often charge a very high rate of interest. Some businesspeople suggest that because low-income persons are statistically more likely to default on loans, creditors must charge a higher interest rate to protect themselves against the increased risk of default. They argue that if sellers are not allowed to charge higher interest rates or prices, low-income buyers will not be able to buy goods on credit. How should a manager balance the need for low-income persons to have credit with the need for businesses to make a profit? Is it ethical to charge higher rates or prices to low-income persons? Should there be any limit to what a seller can charge for credit?