The finding that the average real price of abortions has remained relatively constant over the last 25

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The finding that the average real price of abortions has remained relatively constant over the last 25 years suggests that the supply curve is horizontal.

Medoff (1997) estimated that the price elasticity of demand for abortions ranges from -0.70 to -0.99.

By how much would the market price of abortions and the number of abortions change if a lump-sum tax is assessed on abortion clinics that raises their minimum average cost by 10%? Use a figure to illustrate your answer. M

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