Why we expect the price elasticity of demand for nursing home care to be more negative than the price elasticity of demand for heart surgery?
- OiyLv 64 weeks ago
The demand has negative slope, so it is the case in the question. You are asked if the demand elasticity of the nursing home care is more elastic than the heart surgery. The heart surgery has less option. If you are not done, you are dead. It will not much respond to prices. So it is infact inelastic. On the other hand, you have so many options to demand for the home care. So, it will respond to prices. That is elastic.