Answer:
Rounded to one decimal place, the answer is -0.6%
Explanation:
Price elasticity of demand can be defined as how consumers react or respond to changes in the prices of goods and services.
The formula for price elasticity of demand is Percentage ( % )change in the quantity of goods demanded ÷ Percentage (%) change in the price or cost of the goods.
In the given question above:
The Price elasticity of demand was given as= - 1.7.
Percentage change in medical fees( also known as The percentage (%) change in price or cost of the goods) = 35%
The percentage change in the number of doctor visits = (percentage change in goods demanded) is what we are required to find.
The formula to find the percentage change in the number of doctor visits =
Price Elasticity of Demand multiplied by percentage change in medical fees
-1.7 × 35%
= -0.595%
Rounded up to one decimal place = - 0.6%
Percentage change to the number of doctor's visit = - 0.6%
