For every 10 percent increase in price of health care services, demand falls by 3 percent....

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Question

For every 10 percent increase in price of health care services, demand falls by 3 percent....

For every 10 percent increase in price of health care services, demand falls by 3 percent. How much is the own price elasticity of demand for health care?

Please show work with formula

business economics

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Answer 1

Answer #1

Price elasticity = % change in quantity demanded / % change in price

Price elasticity = -3/10= -0.3

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Answer 2

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For every 10 percent increase in price of health care services, demand falls by 3 percent....

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For every 10 percent increase in price of health care services, demand falls by 3 percent....

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