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

See similar textbooks

Similar questions

8
What is the economic rationale for single payer health insurance? Discuss the economic principles that are most relevant.
6. The demand for the doctor's visits, Q, is the following: Q= 5 – 0.04P. The market price of a visit, equals the MC of $100. What is the equilibrium number of visits? What if the consumer purchases full-coverage (no coinsurance) health insurance and the demand stays the same. How many doctor visits would the patient consume? Calculate the deadweight loss or moral hazard cost as a result of the insurance coverage. Remember, DWL is there if units for which MB>MC are not produced, or if units for which MC>MB are produced.
18. Which of the following best describes the major problems of health care in the U.S? O Poor results - U.S. lifespan is among the lowest of the high-income countries while infant mortality is among the highest. Both high costs and poor results in terms of life span and infant mortality. Lack of choice - there is only one U.S. health insurer, which is a regulated monopoly. High costs - the U.S. spends more on health care than any other country.
According to Health Economists, “more protection does not always leadto less disease”; using the concept of prevalence elasticity of demand for selfprotection explain with an aid of a diagram how this might be the case.
What do you understand by the term "Health Insurance"?2. Describe the different types of Health Insurance3. Discuss factors that would make any two mentioned types of health insurance successful.
1. Fun with cost-sharing. An important distinction in health insurance is between the list price (PL) and out-of-pocket price (PP) of a medical good or service. The list price is the official price that the provider charges the insurance company, while the out-of-pocket price is the price that the insurance customer faces. Sometimes, the out-of-pocket price depends on the list price. a. Suppose a consumer’s demand for a particular medical procedure is Q = 100 − PP. Draw her demand curve in PL–Q space under the assumption of no insurance and label it D1. You will have to think about the relationship between PL and PP to draw it correctly. b. Now assume the same consumer is fully insured. Think about how this affects the relationship between PL and PP and draw a full-insurance demand curve in PL– Q space. Label this curve D2. c. Finally, assume the consumer is part of a partial insurance plan with a copayment provision. Her insurance pays all expenses above and beyond her copayment of…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Can
1. Using three (3) illustrations, explain the concepts of disparities in health determinants and health outcomes. 2. In economics, efficiency is a critical concept in assessing the most effective utilization of resources. Discuss three types of economic efficiencies. Can efficiency reduce disparities in health determinants and health outcomes? If so, how? 3. Beyond efficiency, discuss four (4) ways the concepts of ethics and equity are applied to address health disparities.
Demand studies in health care have provided estimates of both income and price elasticity. Estimates of income elasticity are usually above +1.0. Estimates of price elasticity typically range between -0.1 and -.75 (with hospital services at the lower end and elective services at the upper end). What information do these estimates convey? What does the price elasticity of demand estimates imply for government policymakers, insurance companies, and medical providers' decisions? What does the income elasticity of demand estimates imply for government policymakers, insurance companies, and medical providers' decisions?
BN7.1 Explain the First Welfare Theorem & why it does not apply to Health Care Markets?