Reference no: EM131489356

1. Use a graph to illustrate how the following changes would affect the demand curve for inpatient services at a hospital in a large city.

a. Average real income in the community increases.

b. In an attempt to cut costs, the largest employer in the area increases the coinsurance rate for employee health care coverage from 10 percent to 20 percent.

c. The hospital relocates from the center of the city, where a majority of the people live, to a suburb.

d. A number of physicians in the area join together and open up a discount-price walk-in clinic; the price elasticity of demand between physician services and inpatient hospital services is A0.50.