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7. 10. (9 pts) In the scenario you will illustrate below, show an outcome such that physician induced demand leads to an increase in quantity
7. 10. (9 pts) In the scenario you will illustrate below, show an outcome such that physician induced demand leads to an increase in quantity but no increase in price (beyond the initial market equilibrium price) (4 pts) Draw the initial demand D1 and initial supply 51. lot each label axes correctly, 1 pt each draw curves correctly and label. (2 pts) Illustrate on the graph what happens when there is an increase in physicians (52) (3 pts) Now show how demand can increase (label demand D3 for this problem) and lead to an increase in quantity but no increase in price (i.e., price can stay same or even fall relative to the initial equilibrium price price might be higher than what you found in (b) above). 1 pt correctly increase demand, 1 pt Q increases as drawn, 1 pt price does not increase as drawn
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