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
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....
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