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Decreasing the health insurance copayment

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One way to encourage people to spend more on preventative health care is to reduce the price of health care to consumers by decreasing the health insurance copayment. At current copayment levels, if the price elasticity of demand for visits to see the doctor is -0.75, by what percentage will the quantity demanded of doctor visits increase is the copayment is decreased from $50 to $25 a visit? Please explain.

Reference no: EM131668658

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