The average number of visits per week

Assignment Help Business Economics

Reference no: EM133629730

Question

The average number of visits per week equal 640 when the copayment is $40, but the copayment may rise to $45. You believe that the price elasticity of demand is -0.25. Forecast the percentage change in visits. Percentage change in visits = price elasticity × percentage change in price. If you are right, prices may rise by 12.5% = 5/40. So, your forecast is that visits will drop by 3.125%, a decline of 20.

Reference no: EM133629730

Questions Cloud

Nominal interest rate and real interest rate : Compare and contrast the nominal interest rate and the real interest rate. In your opinion, is one interest rate more important in our economy than the other?

Determine the outcome to public-goods problem : Consider a scenario in which a group of people is trying to determine the outcome to a public-goods problem

Suppose there is some hypothetical closed economy : Suppose there is some hypothetical closed economy in which households spend $0.85 of each additional dollar they earn and save the remaining $0.15.

Dollar without formal pegged rate : A country wants to hold its currency against the U.S. dollar without a formal pegged rate.

The average number of visits per week : The average number of visits per week equal 640 when the copayment is $40, but the copayment may rise to $45.

Price system conveys information about relative scarcity : The Price System conveys information about relative scarcity, which is? The quantity demanded of a good above the quantity supplied

What happens in short run in the keynesian model : What happens in the short run in the Keynesian model to net exports when Net exports rise? The domestic real interest rate falls.

Stock market expansion causes the price level : The increase in consumption spending associated with the stock market expansion causes the price level to the price level people expected

Some empirical studies of labor supply suggest : Some empirical studies of labor supply suggest that the elasticity of the supply of labor for primary earners is in the range of -0.17 to 0.0.

User Account

All Pages