Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

If the income levels of all individuals are equal, the "Population Index" of demand for physician services will be proportional to the population in an area (i.e., demand for physicians will be double in an area compared to another area if the population of the area is double of the other area).  Similarly, if the average income of the area is higher than the other area, multiplication of the "population index" by the income elasticity and income ratios of the two areas (income elasticity x (income of one area/income of another area)) will give the "Income Index". The "Total Index" will be sum of "Population Index" and "Income Index". In the table below, population and average income levels are shown for the areas A, B, C. D and E. Consider area "E" as the comparison area for your calculations. Assume that all the areas are equal in geographic size. If there are 500 physicians in this country and income elasticity is 0.4, find the number of physicians to be located in each of the areas if the physicians are income maximizers.

Area

Pop

Income/cap

A

7558900

42500

B

2185000

15800

C

55000

35200

D

22500

25500

E

10300

10830

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M937983

Have any Question? 


Related Questions in Macroeconomics

What is the lm equation in a large open economy what is the

What is the LM equation in a large open economy? What is the LM equation in a large open economy? What is the LM equation in a large open economy? What is the LM equation in a large open economy?

Describe fiscal policy vs monetary policyexplain the

Describe Fiscal Policy vs Monetary Policy Explain the difference between the two , explain the importance of each. Why each are needed? Who is in charge of the Expansionary and Contractionary Policy of each? What tools d ...

The annual rate of growth of real gdp in a developing

The annual rate of growth of real GDP in a developing nation is 0.2 percent. Initially, the country's population was stable from year to year. Recently, however, a significant increase in the nation's birthrate has raise ...

Which of the following curves reflects the idea that in the

Which of the following curves reflects the idea that in the long run, output is determined only by the factors of production and given technology? a. the aggregate demand curve b. the market supply curve c. the long-run ...

A sudden and sharp increase in gas prices will have what

A sudden and sharp increase in gas prices will have what impact on the market for the following (be sure to discuss both supply and demand): Large gas guzzling vehicles. Small fuel-efficient cars. Research on alternative ...

The corleone and chung families are the only producers of

The Corleone and Chung families are the only producers of good h in the United States. The market demand for good h is h=1200-20p. The costs of production for each of them are represented by the cost functions C1(h1) = 1 ...

Why are database management systems dbmss but really just

Why are database management systems (DBMSs, but really just asking about database technology) important in the business community? Can you provide an example of database technology in the business world?

Question 1 explain why real gdp might be an unreliable

Question 1: Explain why real GDP might be an unreliable indicator of the standard of living. Question 2: Why does unemployment arise and what makes some unemployment unavoidable? Question 3: Consider the following statem ...

Please provide a comprehensive answer to the following two

Please provide a comprehensive answer to the following two questions: 1) Which were the main causes of the Great Depression? 2) Why did the Great Depression last so long? Indications: - To answer these questions, please ...

Establishing a proprietary standard as the industry

Establishing a proprietary standard as the industry standard may require a company to win a format war against a competing and incompatible standard. Strategies for doing this include producing complementary products, le ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro