Week 4 Basic Concepts Elasticities—3 points each ●Per capita income in the county was $40,000, and physician visits averaged 4.00 per person per year. Per capita income has risen to $42,000 and physician visits have risen to 4.02 per person per year. What is the percentage change in visits? What is the percentage change in income? What is the income elasticity of demand for visits?
change in price, and price elasticity of demand.
●Sales were 4,000 at a price of $200 but fell to 3,800 when the price was increased to $220. Calculate the percentage change in sales, the percentage change in price, and the price elasticity of demand. Is demand elastic or inelastic?