Econ Assignment #3.pdf - Professor Lu´ıs Cabral...

This preview shows 1 out of 2 pages.

Professor Lu´ ıs Cabral Microeconomics Fall 2018 Problem Set 3 Instructions. Submit at lecture on Mon day, Oc to ber 1st. Write (you don’t need to type) your answers on separate paper (not on this sheet of paper). Please include: your name; your recitation teacher’s name; day and time of the recitation. NB: if your recitation takes place on Monday morning, you must submit your assignment to your teacher at the beginning of the recitation. 1. Doctor’s office visits. Suppose that a consumer’s annual demand for office visits is described by the equation q = 8 - 0 . 1 p . If office visits cost $30, and the consumer has no health insurance (i.e., the consumer pays full price), how many office visits will she make? What is the price elasticity of demand for office visits at this point? Suppose a health insurance plan is instituted that pays for one-third of each office visit. How would this affect the quantity and the demand elasticity at the new equilibrium?
Image of page 1

Subscribe to view the full document.

Image of page 2
You've reached the end of this preview.
  • Fall '15
  • ANDREWPAIZIS
  • Diana, Peter’s Engel

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern