Ask Question, Ask an Expert


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.



















Macroeconomics, Economics

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

Have any Question? 

Related Questions in Macroeconomics

For this question hurricane katrina damaged a large portion

For this question, Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005. As a result of this, many gasoline distributors were not able to ...

Once again in an hour david can washcars or mowlawn and ron

Once again, in an hour, David can washcars or mowlawn, and Ron can washcars or mowlawn. Who has the comparative advantage in car washing, and who has the comparative advantage in lawn mowing?

Economics assignment-purpose to allow students to research

Economics Assignment- Purpose: To allow students to research and critically analyse an evaluate the macroeconomic performance of an economy. Topic: Analysis and evaluation of Macroeconomics performance of Australia and U ...

Answer all of the following questions1 let the demand

Answer ALL of the following questions. 1. Let the demand function D (p) be such that the price elasticity of demand ∈(p) = -dD(p)/dp.p/D(p) ≥ 1 everywhere. Denote by P (q) the inverse demand function D -1 (q). The two fi ...

Please answer the below questionwhat are the one or two

Please answer the below question. What are the one or two most challenging issues in identifying good alternative solutions that meet the IT acquisition requirements that were defined? Explain your reason(s) and how the ...

The attached spreadsheet shows the total revenues and the

The attached spreadsheet shows the total revenues and the total costs at various output levels (Number of Cans) for the company "Dave's Maple Syrup". 1. We know that this is a characteristic of Perfect Competiton because ...

Digital transmission please respond to the followingcompare

Digital Transmission. Please respond to the following: Compare and contrast the data communication technologies of guided media and unguided media. This should include transmission media, data link control protocols, and ...

Must be two pages for each question1antitrust authorities

Must be Two pages for each question. 1. Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the s ...

Explain the cardinal approach and ordinal approach to the

Explain the cardinal approach and ordinal approach to the derivation of the demand function?

You work for a company in india that manufactures and

You work for a company in India that manufactures and exports batteries and other charge storage devices. You are the sales manager for a DC-DC converter that is used to step up or step down the voltage in various indust ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate