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Health Economics You are employed as an economic consultant to the regional planning office of a large metropolitan area. A recession has caused hospitals in

Health Economics

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You are employed as an economic consultant to the regional planning office of a large metropolitan area. A recession has caused hospitals in the city to consider raising prices. You know that the price elasticity of demand for hospital services equals -0.25, and the income elasticity of demand equals +0.45. Given this information, tell how the quantity demanded for services will change if the hospitals increase the price for services by 2 percent

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