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Currently, there is a $0.50 copayment on drugs. The HMO has decided to raise this to $1.00 per prescription. The cost of a prescription is $6.00, which mean the HMO's contribution to the total cost will fall from $5.50 to $5.00. Currently, the elasticity of demand is about -0.5 for prescriptions, and the HMO members use 2.2 prescriptions per capita. How much will be demanded after the new copayment is put into effect, and how much money will this save the HMO? Explain
q1. suppose that the government cuts taxes in response to a recessionary gap but because of legislative delays the tax
Suppose a drop in the compensating wage differential between risky jobs and safe jobs has been observed. Two explanations have been put forward: The phenomenal success of a new reality show Die on the Job has instilled millions of viewers with an ide..
Your company seeks to take over Good Deal Company. Companies offer for Good Deal is for $3 million in cash upon signing the agreement followed by 10 annual payments of $300,000 starting one year after the agreement. The time value of money is 10%. Wh..
Find the equilibrium given the following demand and supply for oil (in barrels)
Assume that a Swiss watchmaker imports watch components from Sweden and exports watches to the United States. Illustrate what is the relationship among disposable income and consumption expenditure.
Which of the two units would you recommend ? What initial cost of machine A would make the two machines identical in overall cost? P.S. I need work shown please to know how to complete problem
Using this information, draw a Lorenz curve for each country. Remember to convert the above table into a cumulative %. Illustrate which country has the most equal distribution of income.
Where OBPA and SLGA is the opposing team’s on-base and slugging percentage. Assume two very bad teams (OBP = .200 and SLG = .250) are battling for an All-Star free agent, Ken Griffey Jr. If the teams play each other 162 times during the season, how m..
Research shows that much more money is spent on medical care for the elderly today than 50 years ago. What is the likely reason? Do today’s elderly tend to be sicker and more likely to be disabled than in prior years?
Which firm would you expect to make the lowest profits, other things equal?
You have a gross income of $355636 in 2014. Your filing status is single. You do not itemize deductions and you are allowed 1 exemption. What is your federal tax bill, assuming phase out of personal exemptions based on income?
Illustrate what is the competitive advantage including low cost strategy, cost leadership also focus strategy of HSBC Holdings.
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