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There is one method of pricing called non-linear pricing, among many others. In this, the area below the demand curve (Y axis is Price$ and X axis represents Quantity demanded) is the contribution (after subtracting costs or expenses). For a price-demand combination we get a certain contribution, while the area above this rectangle is the "passed up profit" to customers and the area right of it is "money left on table". When these areas are big, we call it inefficient market, so to capture it as much as possible, companies do customization of prices i.e. we have different prices to suit all different customers (based on their willingness to pay). This is the theory we all agree with, and practice too (in North America); then why not supply AIDS drugs at a lower price to Africa?
The issue isn't that simple.
Typically relating our concern to AIDS drugs for Africa, would it benefit those who need it the most? Arbitrage remains a big possibility, not to forget the corruption, poor...
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Title: Critique On AIDS In Africa
Approximate word count: 756
Approximate pages: 4 (250 words per double-spaced page)
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