Last year in a particular market area it is found that 1000 people have their vision checked each year. The average price of the exam is $50. This year for the first time insurance companies will pay for half the price of the exam, with the patient paying the other half. Demand for eye exams is inelastic, with an elasticity coefficient of 0.2 between a price of $25 and $50. How many people will now have their vision checked? Show your work.
Last year in a particular market area it is found that 1000 people have their vision checked each year. The average price of the exam is $50. This year for the first time insurance companies will pay for half the price of the exam, with the patient paying the other half. Demand for eye exams is inelastic, with an elasticity coefficient of 0.2 between a price of $25 and $50. How many people will now have their vision checked? Show your work.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Last year in a particular market area it is found that 1000 people have their vision checked each
year. The average price of the exam is $50.
This year for the first time insurance companies will pay for half the price of the exam, with the
patient paying the other half.
Demand for eye exams is inelastic, with an elasticity coefficient of 0.2 between a price of $25
and $50.
How many people will now have their vision checked? Show your work.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba57c0bd-e350-4c8a-acd5-960c2f09b5ff%2Fc6e78510-3970-46d4-8037-a99277214fe6%2Fu6h5tj.png&w=3840&q=75)
Transcribed Image Text:Last year in a particular market area it is found that 1000 people have their vision checked each
year. The average price of the exam is $50.
This year for the first time insurance companies will pay for half the price of the exam, with the
patient paying the other half.
Demand for eye exams is inelastic, with an elasticity coefficient of 0.2 between a price of $25
and $50.
How many people will now have their vision checked? Show your work.
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