Draw two demand curves and use them to explain the concept of own price elasticity.

A hospital faces the following elasticities in relation to demand for its services: Own-price: 0.25; Travel time: -0.37; and Income = 0.02. Explain/quantify the impact on the demand for hospital services if:

a. If the average travel time to the hospital falls by 15% due to an increase in transportation options to the hospital;

b. If the income level of its catchment population rises by 5%;

c. If the price of hospital services increases by 10%;

d. Which has the greatest impact on the demand for hospital services? Why?