Compute the marginal revenue, price elasticity of demand for a given change in the number of visit and cost of visit.
If the price of a postoperative follow-up visit is reduced from $40 to $30, the number of patients returning for follow-up increases from 18 to 25.
a) Illustrate what is the marginal revenue?
b) Illustrate what is the price elasticity demand?
c) Illustrate what would your estimate of MR and price elasticity be in the quantity demanded moved from 18 to 20 (instead of 25)?