A surgeon specializes in a highly non-elective procedure that is not facing a capacity

constraint. From an economic standpoint we can imply that the surgeon supply is flat and their patients are inelastic. The next day the government announces that it will start a subsidy program in the future. If you were the surgeon where would you focus your resources on?

a. My Accounting division due to the fact that the significant increase in each procedure amount you will receive will cause you to reconsider your tax exposure.

b. Marketing/Pricing, preparing to lower the price your patients have to pay for the procedure.

c. Staffing, to prepare for laying off staff due to the impending reduction in procedures.