managerial economics

1. a. the demand for inferior goods is decreasing when consumer income increases and decided to replace it with alternative goods (explain and draw the graph) b. The demand for health insurance is increasing among high class customers. And this causes upward sloping health insurance demand curve. If the insurance cost is increasing, the demand increases as well. (explain and draw the graph)2. Hospital services are a very high fixed cost business in the fierce price competition. In addition, patients will choose the lowest cost with the most accurate diagnosis and follow-up treatments. However, doctors don't make money in the health care sector. - explain and clarify the statement with the concept of short run firm supply to describe entry and exit in health care industry, why the doctors well paid (please explain with the graphs)