You are a consultant and have been employed by Urban General…
You are a consultant and have been employed by Urban General, a large inner-city hospital, to estimate the demand for its services.Your research indicates that the income elasticity of demand for the target market is +0.50; the price elasticity of demand is -0.15; and the cross-price elasticity of demand with respect to the price of services at St. Elsewhere, a near-by hospital, is +0.35. The price of services at St.Elsewhere falls by 10 percent.What happens to the quantity of services demanded at Urban General?.
Read Details