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Average visits per week equal 640 when the co-payment is $40 and 360 when the co-payment is $60.
a). Calculate the percentage change in visits, percentage, change in price, and price elasticity of demand using 640 and $40 as denominators for percentage change calculation.
b). Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 360 and $60 as the denominators for percentage change calculation.
c). Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 500 and $50 as the denominator for percentage change calculations. (This calculation finds the arc elasticity).
d). How do your answer differ?
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