You estimate that the price elasticity of demand for clinic visits is −0.25. You anticipate that a major insurer will increase the copayment from $20 to $25. This insurer covers 40,000 of your patients, and those patients average 2.5 visits per year. What is your forecast of the change in the number of visits?
Very confused on how to figure these out. Suppose that the following table shows the weekly visits to an amusement park as a function of the daily admission fee charged: #visits daily fee 200 $50 400 $40 600 $30 800 $20 1000 $10
1.calculate the price elasticity of demand when the price was increased from R25 to R40 ? (10) 2.is a price increase the correct decision to raise revenue?substantiate your answer using the price elasticity of demand and income
The demand equation for a product is: q=60/p + ln(65-p^3) A) Determine the point of elasticity of demand when p=4, and classify the demand as elastic, inelastic, or of unit elasticity at this price level. B) If the price is
he following is a cost function for clinic visits in a small inner city clinic: Quantity of Visits Total Cost per Week 0 $10 1 15 2 25 3 45 4 75 5 115 6 165 If the price per visit is given to be $25, at what level of visits will
Determine the price elasticity of demand for a microwave that experienced a 20% drop in price and a 50% increase in weekly demand quantity. I know I have to use the price elasticity of demand formula, but I keep getting the wrong
The new york times reported that subway ridership declined after a fare increase: " There were nearly four million fewer riders in December 1995, the first full month after the price of a token increased 25 cents to $1.50, than in
If you are given this function: P=1000-40Q where P=price and Q=sales..... How do you get the price elasticity of demand at a price that is $500? At what price, if any is the price elasticity of demand equal to one?
There is one firm with a marginal cost of 0. It's monopoly price is 10. Another firm enters, also with zero marginal cost. Using the Cournot model, would would the new oligopoly price be? Can this question be answered without more
How is elasticity of supply related to elasticity of demand? Is this correct? I know that the terms supply and demand refer to the behavior of people as they interact with one another in markets. Buyers determine demand and
The equation for a demand curve has been estimate to be Q = 100 - 10P + 0.5Y, where Q is quantity, P is price, and Y is income. Assume that p = 7 Y = 50. a. Interpret the equation b.At a price of 7, what is price elasticity? c. At
4. The following is a cost function for clinic visits in a small inner city clinic. Quantity of Visits Total Costs per Week Marginal cost 0 $10 0 1 15 5 2 25 10 3 45 20 4 75 30 5 115 40 6 165 50 a. Determine the marginal cost for