The elasticity of demand for physician visits was determined to be -0.2. The president of the local insurance company wants to add a copayment of $0.50 onto each physician visit. Currently, there is no copay. The number of insured people is 3,000,000 and currently the population uses 2.4 visits per capita. How many visits will they use after the introduction of the copayment?

The elasticity of demand for physician visits was determined to be -0.2. The president of the local insurance company wants to add a copayment of $0.50 onto each physician visit. Currently, there is no copay. The number of insured people is 3,000,000 and currently the population uses 2.4 visits per capita. How many visits will they use after the introduction of the copayment?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter5: Demand For Health And Medical Care

Section: Chapter Questions

Problem 9QAP

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