Denominators for percentage change calculations

Assignment Help Business Economics

Reference no: EM13839376

Average visit per week equal 640 when the copayment is $40 and 360 when the copayment is $60.

A. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 640 and $40 as the denominators for percentage change calculations.

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 calculations.

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 funds finds the arc elasticity.)

D. How do your answers differ?

Reference no: EM13839376

Questions Cloud

Firms production function-how much output are they producing : Suppose a firm’s production function is given by the following equation: Q = min(5K, 10L). If the firm is using 4 units of capital and 3 units of labor, how much output are they producing? Is this firm operating efficiently? Why or why not?

Short-run production function : Suppose that Taher's pizza business operates under competitive conditions and that his short-run production function is q=20^E. Once again assume w = $6 but suppose the government imposes a tax of 25% on each dollar he pays his workers, to cover thei..

Bearing on comparative costs under increasing cost condition : Why is that the pre-trade production points have a bearing on comparative costs under increasing cost conditions but not under conditions of constant costs?

Calculate the arc price elasticity : Sales are 3,100 at a price of $200 and 2,400 at a price of $300. Calculate the price of elasticities of demand using $200 as the base value; then use $300 as the base value. Calculate the arc price elasticity and compare the three calculations. How d..

Denominators for percentage change calculations : Average visit per week equal 640 when the copayment is $40 and 360 when the copayment is $60. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 640 and $40 as the denominators for percentage c..

Higher marginal propensity to consume powerful tax policy : The higher the marginal propensity to consume the more powerful tax policy is to influencing consumption. Negative real interests rates imply that if you save today, you can purchase a smaller basket of goods and services in the future, relative to t..

Retail sales tax fair : Retail sales taxes are used at the state and local level to finance general fund expenditures. In other words, the tax revenue collected via the sales tax is not tied directly tied to benefits received by each taxpayer. Retail sales tax fair?

Comparative statics in solows model : Comparative statics in Solow's Model. Explain how the following events affect output, capital and consumption per unit of labor in the long run and along the transition according to Solow's Model:

Banking system has a required reserve ratio : If the banking system has a required reserve ratio of 10%, then the money multiplier is: ______ If Bank A receives a $10,000 deposit and the reserve requirement is 10%, how much does Bank A have available to loan out? __________

User Account

All Pages