When abdominoplasty costs were $6,000, Dr. Hurwitz treated 300 patients. When th

ID: 1167437 • Letter: W

Question

When abdominoplasty costs were $6,000, Dr. Hurwitz treated 300 patients. When they dropped the price to $5,000, customers increased to 400.

What is the elasticity of demand for abdominoplasty using arc elasticity or the midpoints formula (rounded-off to 2 decimal places)?

- 1.38

- 1.57

- 0.157

cannot tell

none of the above

When abdominoplasty costs were $6,000, Dr. Hurwitz treated 300 patients. When they dropped the price to $5,000, customers increased to 400.

What is the elasticity of demand for abdominoplasty using arc elasticity or the midpoints formula (rounded-off to 2 decimal places)?

Elasticity by Midpoint method = [(5000 – 6000) / ((5000 + 6000) / 2)] / [(400 –300) / ((400 + 300) / 2)]

= -0.182 / 0.286 = -0.64

non of the above

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