Increase in income on total health expenditures

Assignment Help Business Economics

Reference no: EM131239044

If the price elasticity of demand is -0.6 and the income elasticity is +0.25, then what is the effect of a simultaneous 10% increase in price and a 20% increase in income on total health expenditures (again just the direction, do not need to calculate the exact change in dollars)? Explain your answer.

Reference no: EM131239044

Questions Cloud

Compare the tax incidence in the short run to the long run : Suppose the government institutes a tax on soft drinks. Assume that short-run and long-run demand curves are the same, while the long-run supply curve is more elastic than the short- run supply curve. Compare the tax incidence in the short run to the..

Probability of tripling her investment : An investor is considering two alternatives for which she has Rs. 1,00,000 to invest. The first is commercial property; the second is stocks. Analysis has revealed that the property alternative offers a 0.50 probability of tripling her investment ..

Under perfect competition firms take prices : Under perfect competition firms take prices as given. In that case, and under constant returns to scale, firms make 0 profits in equilibrium. Show that this is true for the Cobb Douglas production function, when firms rent capital from households at ..

Maintain the same systems and policies everywhere : Wal-Mart operated stores in both the US and Mexico. While Wal-Mart would like to maintain the same systems and policies everywhere they operate, culture creates some differences.

Increase in income on total health expenditures : If the price elasticity of demand is -0.6 and the income elasticity is +0.25, then what is the effect of a simultaneous 10% increase in price and a 20% increase in income on total health expenditures (again just the direction, do not need to calculat..

Analyze what are the key points in the assigned readings : What are the key points in the assigned readings? Based upon your experience in education, how might you apply this content to a classroom and instruction?

What will be the effect on the coefficient : The demand for boxes of nails is estimated to be Q = 100 – 5p + 2Y, where income is measured in thousands of dollars. If p = 4, and Y = 10, What is the income elasticity? ? If the equation is then re-estimated using just dollars instead of thousands ..

Explain to me social complexity-physical uniqueness : Can anyone please explain to me Social Complexity, Physical Uniqueness and Causal Ambiguity as barriers to imitation?

Why a bma approach would be more appropriate than a stepwise : Continuing Exercise 10, the researcher's main interest was to determine which, if any, of the explanatory variables are associated with the country's use of the death penalty. Complete the items below with this in mind.

User Account

All Pages