The price elasticity of demand for the services of Kim Jones, MD, is -4.0. The price elasticity of..


The expense extensileity of claim for the services of Kim Jones, MD, is −4.0. The expense extensileity of claim for physicians’ services overall is −0.1.

a. Why is claim so considerable past extensile for the services of Dr. Jones than for the services of physicians in open?

b. If Dr. Jones moderate expenses by 10 percent, how considerable would body and return exchange?

c. Suppose that all the physicians in the area moderate expenses by 10 percent. How considerable would the aggregate enumerate of visits and return exchange?

d. Why does it shape feeling that your answers to questions b and c are so opposed?