>of taking advantage of someone's desire to live to extract as much money from them as possible in order to increase profit margins that people tend to have a problem with. This is called exploitation
It's not just about exploiting the people paying either, it's also about restricting access to people who can't afford it.
If you don't have an easy way to do price differentiation, inelastict demand encourages a situation where it's more profitable to charge $1million to 1 person than it is to charge $100k, to 10 people.
One way drug companies try to get around that is with price differentiation, but it's not very precise and effectively charging for a product as a percent of your income comes with it's own problems.
It's not just about exploiting the people paying either, it's also about restricting access to people who can't afford it.
If you don't have an easy way to do price differentiation, inelastict demand encourages a situation where it's more profitable to charge $1million to 1 person than it is to charge $100k, to 10 people.
One way drug companies try to get around that is with price differentiation, but it's not very precise and effectively charging for a product as a percent of your income comes with it's own problems.