These are the questions for the journal article titled "Pricing Strategy for Aesthetic Surgery: Economic Analysis of a Resident Clinic's Change in Fee's" (look it up on google please, it won't let paste the link or screenshots)

1)

(a) By what percent did the clinic reduce average fees per procedure during the

experiment period?

(b) What was the resulting change, both directionally and the percentage amount for

procedures in response to the fee reduction?Does this 'obey' the Law of Demand?

Explain your answer.

(c) Based on (a) and (b) above, would you characterize the demand for these procedures

(before the price change) as Elastic, Inelastic, or Unit Elastic?Why?

2) What do the authors show as the demand elasticity before the fee change? Is this consistent with your answer to 1 (c) above?

3) What was the clinic's Total Revenue for these procedures both before and after the fee change? Explain how this is or is not consistent with the demand elasticity.

4) What do the authors show as the demand elasticity after the fee change? Based on this elasticity estimate do you think the clinic's fee structure after the price cuts would maximize revenue? Why?

5) Finally, what other objectives besides revenue maximization should a medical service provider such as this clinic consider when setting their fee structure strategy?