Discuss the factors that determine income elasticity of demand of health insurance.

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A very key factor that determines the income elasticity of demand of health insurance would of course be an increase in the income of individuals that demand of a particular level of health insurance. A situation of this nature will in all probability have a positive income elasticity of demand due to the fact that the increase in income will result in these individuals probably upgrading the level of their insurance coverage, as well as providing coverage for individuals within their households. Another key factor that determines the income elasticity of demand of health insurance, would be a decline in the income or spendable income to individuals that purchase a given level of health insurance experience. A situation of this nature would probably result in a negative income elasticity of demand for health insurance, due to the fact that individuals will tend to ...

"Suppose the demand function is Q=20-4*Price+10*Income, what is the incomeelasticity if Income=400 and Q=20?"
Answer
A. There is not enough information to answer this question
B. 200
C.1000

Quantity Price ElasticityDemanded
100 $ 5
80 $10
60 $15
40 $20
20 $25
10 $30
1. Determine the price elasticity of demand at each quantity demanded using the formula % chg in QD divided by % chg in price.
2. Redo #1 using price changes of $

A. Calculate the cross-price elasticity of demand coefficient of a firm's product X, given that a 5% increase in the price of its close substitute, product Y, causes the quantity demand of product X to increase by 10%.
B.Calculate the income-elasticity of demand coefficient for a product for which a 4% increase in consumers

The demand for haddock has been estimated as:
log Q = a + b log P + c log I = d log Pm
where Q = quantity of haddock sold in New England
P = price per pound of haddock
I = a measure of personal income in the New England region
Pm = an index of the price of meat and poultry
I

Question: Suppose that the price elasticity of demand for good X is -2, its incomeelasticity is 3, its advertising elasticity is 4, and the cross price elasticity of demand between it and good Y is -6. Determine how much consumption changes if:
a) The price of good Y increases by 10%
b) Advertising decreases by 2%
c) Incom

The demand function for gadgets is given by the following formula
Q = 1,000 -10Y - 2 P + 4A
where Q is quantity, Y is income, P is price, and A is advertising.
Currently, Y = 20, P = 30, and A is 15
What is the incomeelasticity of demand?

This year was prosperous for the Starbucks Coffee Company. revenues increased 9 percent, excluding the 1035 new retail outlets that were opened. suppose management attributes this revenue growth to a 5 percent increase in the quantity of coffee purchased. if Starbucks's marketing department estimates the incomeelasticity of

Demand for cassettes can be characterized by the following point elasticities:price elasticity =-2,cross price elasticity with aaa batteries is -1.5, and incomeelasticity =3. please explain the following statement.
a. A 3% price reduction in cassette players would be necessary to overcome the effects of a 2% decline in inco

Suppose the own price elasticity of demand for good X is -3, its incomeelasticity is 1, its advertising elasticity is 2, and the cross-price elasticity of demand between it and good Y is -4. Determine how much the consumption of this good will change if:
Instructions: Enter your answers as percentages. Include a minus (-) si