Maximize profits

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Economics

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Contact offices or look online that offer allergy/flu shots (e.g., find three offices that will give you the necessary information). Find out how much is charged for shots for uninsured people vs. how much is charged (including the amount that is collected from the insurance company) for insured people. Chapter 12 says that to maximize profits, a business should charge a higher price in the market segment where demand is less elastic; the price should be lower in the market segment where demand is more elastic. The idea here is that patients will not be as price sensitive if they are covered by insurance.

If you can get the necessary information, write down the textbook theory, present your numbers, and briefly explain whether the doctors involved are following the textbook theory.

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