Homework questions:

Demand of office visits with cardiologists in Fairfax in 1 week. Assume no insurance

PriceDemand

1401000

1301100

1201200

1101300

1001400

901500

801600

701700

601800

501900

2.Based on the demand schedule shown above, calculate the Price Elasticity of Demand between a price per office visit of $80 and $90.Use the arc elasticity formula.Show your work.

3.Based on the demand schedule shown above, calculate the Price Elasticity of Demand between a price per office visit of $120 and $130.Use the arc elasticity formula. Show your work.

4.In one sentence describe what your answers to questions 2 and 3 mean in non-technical language (for example, imagine that you have to describe your answers to someone who does not know economics).Be precise when interpreting the numbers you calculated.