The price elasticity of demand for the services of Kim Jones, MD, is -4.0. The price elasticity of demand for physicians' services overall is -0.1.

a) Why is demand so much more elastic for the services of Dr. Jones than for the services of physicians in general?

b) If Dr. Jones reduced prices by 10%, how much would volume and revenue change?

c) Suppose that all the physicians in the area reduced prices by 10%. How much would the total number of visits and revenue change?

d) Are your answers to parts b & c similar or different? Explain.