By how much would the market price of abortions and the


Abortion clinics operate in a nearly perfectly competitive market, close to their break-even point. Medoff (2007) estimates that the price elasticity of demand for abortions is and the income elasticity is 1.24. The average real price of abortions has remained relatively constant over the last 25 years, which suggests that the supply curve is horizontal. By how much would the market price of abortions and the number of abortions change if a lump-sum tax is assessed on abortion clinics and raises their minimum average cost by 10%? Use a figure to illustrate your answer. By how much would the market price of abortions and the number of abortions change if a lump-sum tax is assessed on abortion clinics that raises their minimum average cost by 10%? Use a figure to illustrate your answer.

Request for Solution File

Ask an Expert for Answer!!
Econometrics: By how much would the market price of abortions and the
Reference No:- TGS01726949

Expected delivery within 24 Hours