The Mustard Clinic is a hospital in Cleveland, Ohio. The demand for the Mustard Clinic's services has an own-price elasticity of -0.5.

Question A: If the Mustard Clinic were to increase the price of its services by 5%, by how much would the quantity of its services change? In what direction? Show your calculations.

B: Suppose that the local economy stagnates, lowering incomes for much of the population. What effect this will have on demand for hospital services in the short-run, and on supply in the long-run? Briefly explain your reasoning.

C: Suppose that the only other hospital in the area, the Hellmann's Clinic, closes. What is the likely impact (if any) on the position and slope of the demand curve for the Mustard Clinic's services? Briefly explain your reasoning.