assist me with answering the following questions. Please keep in mind that the textbook used for this course is Economic for Healthcare Managers by Robert Lee and it should be incorporated in some of the answers. I cannot attach the textbook because it’s file source is too large. Other external sources may also be used in addition to the text book.
1.During the last five years average daily occupancy at Autumn Acres nursing home has slid from 125 to 95 even though Autumn Acres has cut its daily rate from $125 to $115. Do these data suggest that occupancy would have been higher if Autumn Acres had raised its rates? What changes in non-price demand factors might explain this? (There have been no changes in supply. The number of nursing home beds in the area has not changed during this period.)
2.Why is the demand for healthcare products usually inelastic? Why is the demand for an individual firm’s healthcare products usually elastic?
3.If the income elasticity of demand is 0.2, how would the volume of services change if income rose by 10 percent?
4.Your boss has asked you to describe how the demand for an over-the-counter sinus medication would change in the following situations. Assuming the price does not change, forecast whether the sales volume will go up, remain constant, or go down.
