Reduce the amount consumers spend on health care

Assignment Help Business Economics

Reference no: EM131083520

One way to reduce the amount consumers spend on health care is to raise the price of health care by increasing the health insurance copayment (i.e., the portion of the price patients must pay themselves). At current copayment levels, if the price elasticity of demand for visits to see the doctor is –0.25, by what percentage will the quantity demanded of doctor visits decrease if the copayment is raised from 20 percent to 25 percent? (Be careful, the percentage change in price is not 5 percent in this problem.)

Reference no: EM131083520

Questions Cloud

Customer relationship management program : How can an effective Customer Relationship Management program be used to identify, retain, satisfy and retain customers?

Ordinary language philosophy has on democracy and education : Describe the implications Stanley Cavell’s ordinary language philosophy has on democracy and education. Provide an example of ordinary language philosophy. Examine the ideas of mutual reflection and mutual understanding as it relates to cultural diff..

Learning process and stages of learning : To what extent does the manager training program follow the learning process and stages of learning according to Cognitive and Behavioural Learning Theories?

Evaluate the formation constant kt for the process : Provided the analytical concentration of the chelating reagent exceeds that of Ni(II) by a factor of 5 (or more), the cation exists, within the limits of observation, entirely in the form of the complex. Use the accompanying data to evaluate the f..

Reduce the amount consumers spend on health care : One way to reduce the amount consumers spend on health care is to raise the price of health care by increasing the health insurance copayment (i.e., the portion of the price patients must pay themselves). At current copayment levels, if the price ela..

How to use business as a force for good : What is the difference between a B Corporation, a Non-Profit Corporation, and a For-Profit Corporation? What is so great about the global B Corporations? How can you learn to lead from what they have done?

Reduce the budget deficit : As part of his plan to reduce the budget deficit, President Clinton proposed raising the excise tax on gasoline by 50 cents per gallon. While passage of this proposal was blocked by Congress, what would have happened to the sales of gasoline if the p..

Customers arrive at the veryfast bank as a poisson process : Customers arrive at the Veryfast Bank as a Poisson process of rate λ customers per minute. Each arriving customer is immediately served by a teller. After being served, each customer immediately leaves the bank.

Government complain that two proposed government programs : Advocates of small government complain that two proposed government programs will steal the market from small businesses: One program will foster a major increase in the government production of bread; the second will increase the government producti..

User Account

All Pages