Identifying types of doctor visit as more or less elastic and estimating the price elasticity of demand.
Which are more elastic, dental visits or visits for the treatment of diabetes? Physician visits or hospital days? Psychiatry or orthopedics? Why?
If the price of office visits increases from $20 to $22 and the number of visits per family per year declines from 12 to 10, what is the price elasticity of demand?
Dr. Old needs that all services be paid for at time of treatment, in cash. If he decides to allow patients to pay with credit cards, will this increase or decrease demand? Will it increase or decrease price elasticity?