Given the following demand function for medical care:
Q=100-5p
Where:
P = is the price of health service.
Q = quantity demanded.
What is the quantity demanded at p = 5.
Draw the demand curve for medical care.
Suppose the price rise to (6), calculate the change in consumer surplus.
What is the elasticity of demand for this demand function?
What implications the result in (d) has for government policy toward the health service?
11 answers