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8.6 The average number of visits per week equal 640 when the copayment is $40, but the copayment may rise to $45. You believe that
8.6 The average number of visits per week equal 640 when the copayment is $40, but the copayment may rise to $45. You believe that the price elasticity of demand is -0.25. Forecast the percentage change in visits. Percentage change in visits = price elasticity percentage change in price. If you are right, prices may rise by 12.5% = 5/40. So, your forecast is that visits will drop by 3.125%, a decline of 20
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