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If the Price Elasticity of Demand Is 1 in Absolute

question 80

True/False

If the price elasticity of demand is 1 in absolute value, then a percentage drop in price will lead to an equal percentage increase in quantity demanded.


Definitions:

DRG

Diagnosis-Related Group, a system to classify hospital cases into groups for the purposes of payment.

Post-op Anemia

A condition characterized by a reduction in red blood cells or hemoglobin in the bloodstream, occurring after a surgical operation.

Coronary Artery Bypass Graft

A surgical procedure to improve blood flow to the heart by diverting blood around narrowed or blocked coronary arteries.

IPPS

An acronym typically standing for 'Inpatient Prospective Payment System', a method used by Medicare to pay for hospital stays.

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