F8. Dr. Old requires that all services be paid for a time of treatment, in cash. If he decided to allow patients to pay with credit cards, will it increase or decrease price elasticity?It will increase price elasticity because more options of payment are begin to the patient.
F9. Which is more price elastic: the demand for Cesarean sections or the demand for vaginal deliveries? Why?
F10. A health economist tells you that the income elasticity of demand for household medical spending is 0.43. What does this mean?
F11. The economist then goes on to tell you that the price elasticity of demand for physician office visits is -0.12. What does this mean?
F12. The income elasticity of demand for liquor is estimated to be about + 2.1. Estimate the impact on consumption of liquor if income rises 40%; if income rises 10%?
F13. The income elasticity of demand for liquor is estimated to be about + .09. Estimate the impact on consumption of liquor if income rises 40%; if income falls 10%?.
F14. The income elasticity of demand for liquor is estimated to be about -.6. Estimate the impact on consumption of liquor if income rises 40%; if income falls 10%?
F15. When GoodPatient Hospital raised its fees for inpatient stays, its total revenues fell. When BadPatient Hospital raised its fees for inpatient stays, its total revenues went up. What can we conclude about the elasticity of demand for each hospital?
F16. The price elasticity of demand of outpatient visits is -1.0. If price increases by 10%, total revenues for outpatient visits will ____________. Why?
F17. The price elasticity of demand for nurse practitioner office visits is -0.1. If price decreases by 10%, total revenues for outpatient visits will ____________. Why?
F18. Identify two examples of a substitute and two examples of a complement for medical goods and services. Describe how cross elasticity is related to substitutes versus complements.
F19. Is chemotherapy a substitute for or a complement to cancer surgery?