Medical malpractice is the third leading cause of death in the US. Because of recent judicial decisions, a medical doctor has decided to buy malpractice insurance, which we consider to be a fixed cost. Then:

a.The doctor should charge higher prices for her services to make up for the additional cost of the insurance

b.The doctor should leave her prices unchanged as this is a fixed cost

c.The doctor should charge lower prices to get more customers because the elasticity of demand is greater than one