C\'e 1 * 49% \'alar.led , in terms o4 PM The equilibrium quionnoi Expert G&A; Do
ID: 1149048 • Letter: C
Question
C'e 1 * 49% 'alar.led , in terms o4 PM The equilibrium quionnoi Expert G&A; Done 2) In a commentary piece on the rising cost of health insurance, ("Healthy, Wealthy, and Wise," Wall Street Journal, May 4, 2004, A20), economists John Cogan, Glenn Hubbard, and Daniel Kessler state, "Each percentage-point rise in health-insurance costs increases the number of uninsured by 300,000 people." Assuming that their claim is correct, demonstrate that the price elasticity of demand for health insurance depends on the number of people who are ins What is the price elasticity if 194 million people are insured? If 194 people are insured then the price elasticity of demand for health insurance is_. 3) A subsidy is a negative tax in which the government gives people money instead of taking it from them. If the government applied a S2.402.40 specific subsidy instead of a specific tax in the figure to the right, what would happen to the equilibrium price and quantity? Use the demand function and the after subsidy supply function to solve for the new equilibrium values. What is the incidence of the subsidy on consumers? Prior to the subsidy, demand is Q 286-20P and upply is Q-88 +40p. The equilibrium price with the subsidy is p*? 4) 3) Suppose that the demand function for aluminum isExplanation / Answer
First question is answered below
1.
A rise in number of uninsured is equivalent to fall in number of insured.
Thus, the elasticity of demand of health insurance depends on the number of insured as well.
To answer rest of the question, data is not provided.