part CD 4. Suppose a consumer would have 5 dental visits a year at the price of $20. When the price rises to $100 per visit, she visits the dentist 3 times a year. Below is the demand curve for this consumer. Demand 250 200 150 100 50 5,20 D 1 Quantity A. Calculate the slope of the demand curve. B. What is the demand elasticity from $100 per visit to $20 per visit? Show your calculation. C. Use the slope to calculate how many times will the consumer visit the dentist if he is completely insured? D. When the price of a hospital outpatient dental care visit increases by 10%, visits to dentists increase from 1 to 3 visits. Calculate the cross-price elasticity. Are these two products complementary or substitute goods? Price 3,100

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
icon
Related questions
Question

Asap

part C D
4. Suppose a consumer would have 5 dental visits a year at the price of $20.
When the price rises to $100 per visit, she visits the dentist 3 times a year.
Below is the demand curve for this consumer.
Demand
250
200
150
100
50
5,20
Quantity
A. Calculate the slope of the demand curve.
B. What is the demand elasticity from $100 per visit to $20 per visit? Show your
calculation.
C. Use the slope to calculate how many times will the consumer visit the dentist
if he is completely insured?
D. When the price of a hospital outpatient dental care visit increases by 10%,
visits to dentists increase from 1 to 3 visits. Calculate the cross-price
elasticity. Are these two products complementary or substitute goods?
Price
100
Transcribed Image Text:part C D 4. Suppose a consumer would have 5 dental visits a year at the price of $20. When the price rises to $100 per visit, she visits the dentist 3 times a year. Below is the demand curve for this consumer. Demand 250 200 150 100 50 5,20 Quantity A. Calculate the slope of the demand curve. B. What is the demand elasticity from $100 per visit to $20 per visit? Show your calculation. C. Use the slope to calculate how many times will the consumer visit the dentist if he is completely insured? D. When the price of a hospital outpatient dental care visit increases by 10%, visits to dentists increase from 1 to 3 visits. Calculate the cross-price elasticity. Are these two products complementary or substitute goods? Price 100
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Price Control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Survey Of Economics
Survey Of Economics
Economics
ISBN:
9781337111522
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,