13. Consider the following data from the Manning et al. paper "Health Insurance and ..." a) Calculate the price elasticity of demand for outpatient expenses based on movement from the 50 percent plan to the free plan. (Use the coinsurance rates given in the table) b) Is inpatient care more responsive to rates or outpatient care? (6 points) TABLE 2-SAMPLE MEANS FOR ANNUAL USE OF MEDICAL SERVICES PER CAPITA Face-to- Outpatient Face Expenses Admis- Dollars Inpatient Prob. Any Medical Prob. Any Total Inpatient Expenses Plan Visits (1984 $) sions (1984 $) (%) (%) (1984 $) Free 4.55 340 .128 409 86.8 10.3 749 (.168) (10.9) (.0070) (32.0) (.817) (.45) (39) 25 Percent 3.33 260 .105 373 78.8 8.4 634 (.190) (14.70) (.0090) (43.1) (1.38) (0.61) (53) 50 Percent 3.03 224 .092 450 77.2 7.2 674 (.221) (16.8) (.0116) (139) (2.26) (0.77) (144) 95 Percent 2.73 203 .099 315 67.7 7.9 518 (.177) (12.0) (.0078) (36.7) (1.76) (0.55) (44.8)