1. Given the following two tables:Table 2.12: Outpatient utilization Table 2.13: Outpatient utilizationin Tokyo and Hokkaido, 1999.in Tokyo and Hokkaido, 2000.RegionOutpatient visits Price/visitRegionOutpatient visits Price/visitTokyoHokkaido20¥1.25/month1.5/monthTokyoHokkaido30¥1.0/month1.2/month10¥15¥a.) Calculate the elasticity of demand for health care for Tokyoand Hokkaido separately.b.) Using your estimated elasticities, what would the demand forhealth care in each prefecture be if the price were raised to 40 ¥visit next year (for both prefectures)?per

Given information: In Tokyo: Q1 initial quantity= 1.25 and Initial price P1 =20 Q2 new quantity =…

1. Given the following two tables: Table 2.12: Outpatient utilization Table 2.13: Outpatient utilization in Tokyo and Hokkaido, 1999. in Tokyo and Hokkaido, 2000. Region Outpatient visits Price/visit Region Outpatient visits Price/visit 20Y Tokyo Hokkaido 1.25/month 1.5/month Tokyo Hokkaido 1.0/month 1.2/month 30Y 10¥ 15¥ a.) Calculate the elasticity of demand for health care for Tokyo and Hokkaido separately. b.) Using your estimated elasticities, what would the demand for health care in each prefecture be if the price were raised to 40 ¥ per visit next year (for both prefectures)?

1. Given the following two tables: Table 2.12: Outpatient utilization Table 2.13: Outpatient utilization in Tokyo and Hokkaido, 1999. in Tokyo and Hokkaido, 2000. Region Outpatient visits Price/visit Region Outpatient visits Price/visit 20Y Tokyo Hokkaido 1.25/month 1.5/month Tokyo Hokkaido 1.0/month 1.2/month 30Y 10¥ 15¥ a.) Calculate the elasticity of demand for health care for Tokyo and Hokkaido separately. b.) Using your estimated elasticities, what would the demand for health care in each prefecture be if the price were raised to 40 ¥ per visit next year (for both prefectures)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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