Question

The demand for heart surgery is price inelastic. So it follows that: b. if the price...

The demand for heart surgery is price inelastic. So it follows that:

b. if the price of heart surgery increases, total expenditure by consumers on heart surgery will rise.

a. the percentage change in price is less than the resulting percentage change in quantity demanded.

d. both a and b

c. changes in price do not affect the number of operations demanded.

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Answer #1

Answer: Option c) changes in price do not affect the number of operations demanded

When the demand for a good is price inelastic this means that when the price of that good changes than its effect on the demand is very less. Here also, when the price of heart surgery will increase there will be no change in the demand for heart surgery if a patient needs surgery he will still go to get surgery even if its price increases. Similarly, if the price for surgery falls people will not increase their demand for operations. So there will be no affect of change in price on the number of operations.

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