One way to reduce the amount consumers spend on health care, Ask an Expert

Economics

One way to reduce the amount consumers spend on health care is to raise the price of health care by increasing the health insurance copayment (i.e., the portion of the price patients must pay themselves). At current copayment levels, if the price elasticity of demand for visits to see the doctor is –0.25, by what percentage will the quantity demanded of doctor visits decrease if the copayment is raised from 20 percent to 25 percent? (Be careful, the percentage change in price is not 5 percent in this problem.)

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91821464

Have any Question?Write your Review or question?

Related Questions in Business Economics

Your normally distributed population has a mean of 55 and a

Your normally distributed population has a mean of 55 and a standard deviation of 6. 95% of individual scores will fall between what 2 values? What percent of scores fall below 49?

Istrade zero sum explainthe ways in which itisandthe ways

Is trade zero sum? Explain the ways in which it is and the ways in which it is not as well as an overall assessment explaining why or why not?

If we believe the percent to be 75 how many police officers

If we believe the percent to be 75%, how many police officers must we survey to estimate the proportion of officers who graduated from a police academy if we want to ensure we can be 99% we are within 2% of the true prop ...

A survey of 1272 pre-owned vehicle shoppers found that 8

A survey of 1272 pre-owned vehicle shoppers found that 8% bought the extended warranties. What is the population and what is the sample?

If the probability of either outcome a or outcome b arising

If the probability of either outcome A or outcome B arising during a single random process is 0.4 and we also know that the probability of outcome A is 0.2 while the probability of outcome B is 0.3, how are these two out ...

Staples has six special drafting pencils for sale two of

Staples has six special drafting pencils for sale, two of which are defective. A student buys two of these six drafting pencils, selected at random. Let the random variable X be the number of defective pencils. Construct ...

Suppose demand is given by the equation qd 80p using the

Suppose demand is given by the equation: QD = 80/P Using the midpoint method, what is the price elasticity of demand between $2 and $4?

A financial analyst examined the possible returns from

A financial analyst examined the possible returns from several financial investments. When the performance of these investments was later examined, it turned out that 25% performed much better than the market average, 25 ...

Suppose you perform a multiple regression to predict crime

Suppose you perform a multiple regression to predict crime rate in a state and includes as indicators of predictions the homeownership rate divorce rate and the personal bankruptcy. Explain how to conduct a test of hypot ...

A representative from your company visited a prison and

A representative from your company visited a prison and sampled 500 prisoners in Kailil, concluding that 90 of them are political prisoners. The Test hypothesis, at the 5% significance level, that one third of the prison ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert