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

Economic projectempirical project the research project

Economic Project Empirical Project The research project should be about 10 pages and should explain your data collection, model, and findings. Below is a quick guide to doing empirical research. Guide to doing an empiric ...

How would a keynesian economist use fiscal policy to fix a

How would a Keynesian economist use fiscal policy to fix a recession? How would a Keynesian economist use fiscal policy to fix an inflation?

What efforts have been made and by whom to promote

What efforts have been made and by whom to promote alternative crops to peasants in Central and South America?

Assignmentread reading material and go to to

Assignment Read Reading material and go to to https://www.cia.gov/library/publications/the-world-factbook to research and select a country for international expansion of business operations. Prepare a Word document of th ...

Explain why the kinked demand curve model of oligopoly

Explain why the "kinked demand curve" model of oligopoly represents a game theory approach to oligopolistic behavior.

Economics required research reportevaluation of demand

Economics Required Research Report Evaluation of Demand Elasticity Business reports should be typed, double spaced, standard margins, and all sources fully cited. Please attach any referenced newspaper and or magazine ar ...

If the banks desired reserve ratio rr is 25 and the publics

If the banks' desired reserve ratio (rr) is 2.5% and the public's currency ratio (cr) is 7.5%, an increase in monetary base (MB) of $1,000 will result in?

Suppose we have the following three projects up for vote a

Suppose we have the following three projects up for vote: A Highway, a Homeless Shelter, and a Port. There are three representatives who will individually vote on the projects. The net social benefits to the constituents ...

Macroeconomics is designed to help us better comprehend the

Macroeconomics is designed to help us better comprehend the full nature of the economy on a national scale and how the government is involved (D.Andolfatto, 2008).  Two macroeconomic variables that would affect the busin ...

Explain why 76 years ago the rowell-sirois commission

Explain why, 76 years ago, the Rowell-Sirois Commission argued that: "The quality of education and welfare services is no longer a matter of purely provincial and local concern. In Canada today, freedom of movement and e ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen