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1.In September of 2019 General Motors was negotiating with the United Auto Workers over a new contract.One area of contention is the share of health
1.In September of 2019 General Motors was negotiating with the United Auto Workers over a new contract.One area of contention is the share of health care costs employees pay.At that time employees paid about 5% of total costs for health care and GM was proposing increasing that to 15%.Given the following different assumptions as to the employee's price elasticity of demand for health care compute the change in total health care expenditures that would likely occur.
a.-.10
b.-.25
c.-1.2
d.-1.0
e.-2.5
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