Last year in a particular market area it is found that 1000 people have their vision checked each year. The average price of the exam is $50. This year for the first time insurance companies will pay for half the price of the exam, with the patient paying the other half. Demand for eye exams is inelastic, with an elasticity coefficient of 0.2 between a price of $25 and $50. How many people will now have their vision checked? Show your work.

Q: Identify each factor influencing elasticity and give a specificexample of how it affects the degree…

A: Answer: There are mainly four factors that affect the elasticity of demand which are as follows:…

Q: If a product's price rises by 6%, and its quantity demanded falls by 8%, then its elasticity is…

A: Increase in Price=6% Decrease in quantity= 8%

Q: Transatlantic air travel in business class has an estimated elasticity of demand of 0.62, while…

A: The elasticity of demand is the measurement in which change in quantity demanded due to the change…

Q: The price of a good rises from $8 to $12, and the quantity demanded falls from 110 to 90 units.…

A: Initial price, P = $8 Final price, P1 = $12 Initial quantity, Q = 110 Final quantity, Q1 = 90

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A: A good's cost elasticity of demand is a computation of how sensitive the quantity demanded is to its…

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A: Price elasticity of demand refers to the responsiveness of demand due to change in price. Elastic…

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A: Price elasticity of demand measures the responsiveness of change in quantity demanded due to change…

Q: An end of aisle price promotion changes the price elasticity of a good from -2 to -3. If the normal…

A: We will use the relationship between Price, Marginal Cost and elasticity of demand

Q: Comment on the elasticity of demand for medicine

A: The elasticity of demand for any good represents how the quantity demanded is impacted when price of…

Q: Is sugar elastic or inelastic?  State determinants that support guess.

A: Sugar is considered as necessities good and it doesn’t have strong substitutes. The necessary goods…

Q: The demand curve for product a is given as Q = 2000 - 20P. At what price would elasticity be…

A: Q = 2000-20P dQdP=d(2000-20P)dP=-20   Point elasticity is given by the formula, Ed = dQdP×PQ   We…

Q: An experiment is conducted that provides the data in the accompanying table.             Toll…

A: Price elasticity of demand is a measure of sensitiveness of quantity demanded if there is a change…

Q: The price elasticity of demand for a product is unitary elastic. At a price of $30, 100 units of the…

A: Unitary elasticity is the percentage change in the price that tends to equal percentage change in…

Q: Find the point advertising elasticity of demand of a medical supplier if the business spent 10,000…

A: Ed = Percentage change in sales/Percentage change in money spent on advertising

Q: Compute the point advertising elasticity of demand (%ΔQX/%ΔA) of a medical supplier if the business…

A: Given, Previous budget on advertisement= P 8000 New budget on advertisement = P 10,000 Increase in…

Q: Suppose the price of a concert ticket rises from $20.00 to $25.00 and the number of tickets sold…

A: Answer to the question is given by:

Q: Aluminum can be used to produce cable (buyers have elastic demand) or to make aircraft (inelastic…

A: In order to prevent re-sales, the firm should integrate with vertical industries which have higher…

Q: Question 1.5 The demand curve for a good is Q = 500 − 4p 2 . What is the elasticity at the point p =…

A: Formula for elasticity of Demand is Ed=dQdp×pQ

Q: Elasticity measures Select one: a. The slope of a demand curve b.The inverse of the slope of a…

A: Elasticity shows whether the good is normal or inferior. There are different types of elasticities.

Q: A group of people that were insured last year paid $20 out of pocket for a primary care visit but…

A: Solution - Given in the question- Old amount people need to pay for primary care visit = $20 New…

Q: The demand for a product is unit elastic.  At a price of $20, 10 units of a product are sold. If the…

A: Given information,  Price elasticity is 1 Earlier price is 20 Final price is 40 Initial quantity is…

Q: The demand function for a good is Q = 100 − 2p. What is the elasticity at the point p = 10 and Q =…

A: Elasticity of demand measures the responsiveness of quantity demanded to changes in price level.

Q: The likelihood that a child will attend a love musical performance modeled by:…

A: The income elasticity of demand is an economic variable that measures the responsiveness of demand…

Q: Before the virus, the demand and supply for Good A is D1 and S1. If the income elasticity is .5, the…

A: According to the law of demand, buyers will demand less of an economic good at higher…

Q: if the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80 will:

A: Price elasticity of demand refers that the change in demand due to change in price so here we…

Q: if the income elasticity of the product is less than 1. During an economic crisis a reasonable…

A: Income elasticity refers to percentage change in quantity demanded for a good as a result of…

Q: A price-taker perceives a demand curve that: is perfectly inelastic. is perfectly elastic. has an…

A: 1) in perfect competitive market, there are many number of sellers and buyers which turns the market…

Q: The demand function for a good is Q = 100 − 2p. What is the elasticity at the point p = 10 and Q =…

A: Price elasticity of demand: - Price elasticity of demand measures the responsiveness of change in…

Q: rom 1000

A: Point elasticity is defined as the price elasticity of demand which is being at a specific point…

Q: A study of the effects of the minimum wage on employment of low-skilled workers estimated the price…

A: We have w2 = 7.75 and w1 = 7.25

Q: True or False:  The more elastic a demand curve is, the flatter it will be. Group of answer choices…

A: Examples of elastic goods in  certain food, beverages.and  expensive  goods. Demand elasticity,…

Q: If the quantity sold of a product rose from 4 units to 10 units as a result of a price decrease from…

A: The price elasticity of demand helps to understand what can be the derived percentage change in…

Q: The price of cigars is $10, with a quantity demanded of 1,000 per day. If the price increases to…

A: Price elasticity of demand =  % change in the quantity demanded/ % change in the price

Q: The poor tend to have a price elasticity of demand for movie tickets that is greater than 1. Why…

A: Elasticity of demand can be explained by the fact that it is the percentage change in quantity…

Q: Suppose before Corona virus Tamanna Pharmacy in Bashundhara used to sell 50 masks per day at a price…

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Q: Suppose you're trying to compare the year-to-year performance of one of your regional salespeople…

A: Income elasticity of demand depicts how much consumer responds with the change in his income.

Q: Demand is negatively sloped. Supply is perfectly elastic. Putting an excise tax on sellers will…

A: Basics:- Inelastic side whether the buyers side (demand) or suppliers side ( supply) has to bear the…

Q: A life saving medicine without any close substitutes will tend to have (in absolute value, as usual.…

A: A life saving medicine without any close substitutes will tend to have an inelastic demand curve…

Q: The price of product X is reduced from $150 to $140 and, as a result, the quantity demanded…

A: Price elasticity of demand measures the responsiveness of quantity demanded with respect to change…

Q: Average visits per week equal 640 when the copayment is $40 and 360 when the copayment rises to $60.…

A: Given  When copayment is $40, then the average visits per week is equal to 640 When copayment is…

Q: Price Elasticity of demand is important to business  Shift tax burden to consumers  Price…

A: The price elasticity of demand is a measure of how a product's consumption changes in response to…

Q: Since the supply curve intersects the horizontal axis, all of the points along the supply curve…

A: Elasticity of supply is the responsiveness of quantity supplied when nothing but the price changes.…

Q: The demand curve for a good is Q = 500 − 4p2 . What is the elasticity at the point p = 5 and Q =…

A: Answer to the question is as follows:

Q: If the price elasticity of demand for a product is 1.5, then a price cut from $3.00 to $2.70 will…

A: Price elasticity of demand measures the responsiveness of quantity demanded with respect to change…

Q: All of the following are true, except​

A: Price is defined as the monetary value of all goods and services which are established during a…

Q: Elasticity represents the willingness of buyers or sellers to leave the market, which in turns…

A: Elasticity measures the responsiveness of quantity to changes in price

Q: A firm has unitary elasticity for its product. During the movement control order (MCO), Should the…

A: Unitary Elasticity: It refers to the elasticity that is equal to one. Under the unitary elasticity,…