Assume that the monthly premium for manage care increases from $10 to $16, and that increase prompts a 60 percent of a health plan's employees to switch to another plan. Based on this empirical evidence, we could say that the elasticity of manage care insurance is equal to???

I got it.... -1.0

good job

that is correct!

To determine the elasticity of managed care insurance, we need to calculate the percentage change in quantity demanded relative to the percentage change in price.

Let's break down the given information:
- The monthly premium increases from $10 to $16, which is an increase of $6.
- The increase in price prompts 60% of the health plan's employees to switch to another plan.

To calculate the percentage change in quantity demanded, we need to determine how much the quantity demanded changes as a percentage of the initial quantity. In this case, we can say that 60% of the employees switching to another plan represents the percentage change in quantity demanded.

Now, let's calculate the elasticity using the formula:
Elasticity = Percentage change in quantity demanded / Percentage change in price

Percentage change in quantity demanded = (Decrease in quantity demanded / Initial quantity demanded) * 100
= (60% / 100%) * 100
= 60%

Percentage change in price = (Increase in price / Initial price) * 100
= ($6 / $10) * 100
= 60%

Now, substitute the values into the formula:
Elasticity = 60% / 60%
= 1

Hence, based on the given information, we can say that the elasticity of managed care insurance is equal to 1.