What would price elasticity of demand for this individual be

Assignment Help Microeconomics
Reference no: EM133918456

Problem

I. An outpatient clinic charges $50 for every patient visit and averages 500 visits per day. If the clinic raises the price-per-visit to $75, the clinic will average 450 visits per day. What would the price elasticity of demand for this clinic be? Is this elastic or inelastic?

II. Currently, an individual has an insurance plan where the copay for a general clinic visit is $30 and the individual averages 5 visits per year. However, if the copay increases to $36, the individual will average 4 visits per year. What would the price elasticity of demand for this individual be? Is this elastic or inelastic? Get the instant assignment help.

III. In a few sentences, using the elasticity of demand, briefly explain why it is important that copays exist but that they not be set too high.

Reference no: EM133918456

Questions Cloud

What are the key differentiating characteristics of a market : What are the key differentiating characteristics of a market characterized by oligopoly versus monopolistic competition? Provide one specific example of each.
Show the effect of the recession on equilibrium price : Assume the economy moves into a recession and the demand for Acme's product falls. Show the effect of the recession on equilibrium price, output, and profits.
Do you see any significant trends : Graph the main expenditure components of GDP, in real terms, since the first quarter of 1947. Do you see any significant trends?
Elements of an organizational ethics program : What are the essential elements of an organizational ethics program? Be specific! How would you implement in your current or future organization?
What would price elasticity of demand for this individual be : What would the price elasticity of demand for this clinic be? What would the price elasticity of demand for this individual be? Is this elastic or inelastic?
How many laborers should it hire : Below is table concerning Happy Hearts Farming operation. If firm sells its corn in purely competitive market for $10 per ton, how many laborers should it hire?
Why are you interested in joining ability beyond : You have a Master's Degree in Protection management and a bachelor of science in criminal justice both degrees from John Jay College.
Which best explains what would happen to labor supply curve : When the population of a nation increases due to immigration which best explains what would happen to the labor supply curve?
What is the marginal product for each worker : Carmelita is an entrepreneur who lives in the Philippines and is interested in starting her own small tailoring. What is the marginal product for each worker?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd