What is the arc price elasticity of demand for health care in Japan based on these data? c. Using your estimated elasticity from part a, what would the demand for health care be if the price in Tokyo were raised to 30 Yen per visit? d. Using your estimated elasticity from part a, what would the demand in Hokkaido

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter5: Demand For Health And Medical Care
Section: Chapter Questions
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Outpatient
Price per
Region
Tokyo
Visits
Visit
1 per month
25 Yen
Hokkaido
1.5 per month
10 Yen
What is the arc price elasticity of demand for health care in Japan based on these
data?
a.
c. Using your estimated elasticity from part a, what would the demand for health
care be if the price in Tokyo were raised to 30 Yen per visit?
d. Using your estimated elasticity from part a, what would the demand in Hokkaido
be if the price were lowered to 5 Yen per visit?
Transcribed Image Text:Outpatient Price per Region Tokyo Visits Visit 1 per month 25 Yen Hokkaido 1.5 per month 10 Yen What is the arc price elasticity of demand for health care in Japan based on these data? a. c. Using your estimated elasticity from part a, what would the demand for health care be if the price in Tokyo were raised to 30 Yen per visit? d. Using your estimated elasticity from part a, what would the demand in Hokkaido be if the price were lowered to 5 Yen per visit?
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