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Assume that medical expenditure are fully deductible from taxes. Show diagrammatically the effect of demand for medical services. If the elasticity of demand with respect

Assume that medical expenditure are fully deductible from taxes. Show diagrammatically the effect of demand for medical services. If the elasticity of demand with respect to price is 0.7; what is the effect of deductibility on an individual in the 15 percent marginal tax bracket; in the 28 percent marginal tax bracket?

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