Question
Careforall, The mayor of sickcity, claimed that his residents are very elastic and highly sensitive when the price of preventative care changes but not so
Careforall, The mayor of sickcity, claimed that his residents are very elastic and highly sensitive when the price of preventative care changes but not so sensitive when the price of inpatient care changes. To prove her point she refered back to the RAND studies. She claimed that the results of a replicated study in her town are shown below
PlanAverage # of preventative care visitsAverage # of inpatient visits
Free3.2 0.126
25%2.54 0.122
50%2.10
0.118
Find the price elasticity between 25% and 50% for preventative care in Sickcity. Round to 3 digits after the decimal
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