Read the following passage and answer the questions.
Gender-based pricing, also known as “pink tax,” is an upcharge on products traditionally intended for women which have only cosmetic differences from comparable products traditionally intended for men. In other words, it’s not actually a tax. It’s an “income-generating scenario for private companies who found a way to make their product look either more directed to or more appropriate for the population and saw that as a moneymaker,” explains Jennifer Weiss-Wolf, a lawyer, vice president for the Brennan School of Justice at NYU School of Law, and co-founder of Period Equity
Yet pink tax is not a new phenomenon. The issue was delineated more finely in 2015 when the New York City Department of Consumer Affairs released a report about price disparities for 794 comparable products from 91 brands sold throughout the city. The report examined five different industries, such as personal care products or senior/home healthcare products. These encompassed 35 product categories, such as bodywash or shampoo. In every single of those five industries, consumer goods marketed to women and girls cost more. The same was the case in all but five of the 35 product categories. Researchers looked at 106 products in the toys and accessories category and found that, on average, those intended for girls were priced 7 percent higher.
NYC’s report found women faced an average price difference of 13 percent for personal care products among the 122 products compared in the study. And the authors aptly noted that these items, such as shaving gel and deodorant, are the ones purchased most frequently compared with other categories — meaning that the ____________ add up over time. While this is unfair for all those shopping for these products, that 13 percent price increase hits women and girls who come from lower income households even harder. Legislative attempts, however, could correct the pink tax. In 1995, then-Assemblywoman Jackie Speier successfully passed a bill that forbade gender pricing of services, such as haircuts.
What does the author mean by “In other words, it’s not actually a tax”?
Correct Answer :
Gender-based pricing is only a pricing strategy by private companies.
Solution :
The correct option is: Gender-based pricing is only a pricing strategy by private companies.
Step-by-step Explanation:
1. Analyze the Passage:
According to the first paragraph of the passage, the author defines gender-based pricing (also known as the "pink tax") as "an upcharge on products traditionally intended for women which have only cosmetic differences from comparable products traditionally intended for men."
2. Deconstruct the Target Quote:
The author explicitly states, "In other words, it’s not actually a tax." Immediately following this statement, the author provides an explanation from Jennifer Weiss-Wolf (a lawyer and vice president at the Brennan Center for Justice):
"It’s an 'income-generating scenario for private companies who found a way to make their product look either more directed to or more appropriate for the population and saw that as a moneymaker'..."
3. Interpret the Meaning:
By stating that it is "not actually a tax," the author clarifies that the "pink tax" is not a mandatory levy imposed by the government. Instead, it is a commercial pricing strategy designed and implemented by private companies to generate higher profit margins (a "moneymaker") by capitalizing on cosmetic differentiation targeted at female consumers.
4. Evaluate the Options:
- “Pink tax” is not the actual tax as it is only levied on woman: Incorrect, as a tax is defined by its source (government), not just whom it affects.
- An actual tax is levied on the society only after collecting the "pink tax.": Incorrect, as there is no such sequential relationship mentioned.
- Gender based pricing or pink tax is merely an extension to the actual tax imposed by the government: Incorrect, the passage explicitly separates it from actual government taxes.
- Gender-based pricing is only a pricing strategy by private companies.: Correct, as this directly aligns with the explanation of it being an income-generating strategy by private entities.
- Can not be determined: Incorrect, as the context provides a clear definition.
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