Suppose you are collecting data from a country like Japan
Eco Question
1.Suppose you are collecting data from a country like Japan where the government sets the price of health care. Each prefecture in Japan has a different set of prices (for example, Tokyo has higher prices than rural Hokkaido). Data for 1999 is displayed in the table below:
Outpatient utilization in two regions in Japan
a. What is the price elasticity of demand for health care consumers in Japan (using only this data)?
b. Suppose that incomes are generally much higher in Tokyo than Hokkaido. Is your answer to the last question an overestimate or underestimate of price elasticity? Justify your answer. [Hint: It may be helpful to plot the data points from Table 2.12 and consider likely demand curves for Tokyo and Hokkaido.]
2.
The table below shows data from Rich-Edwards et al. (2005) on the prevalence of various afflictions among female nurses who were born at different weights. Use the table to answer the following questions:
- Is it a coincidence that all nurses born at average birth weight suffer from coronary heart disease, stroke, and all cardiovascular disease at the exact same rate?
- Summarize the data in the figure in one or two concise sentences.
- What is the implication of these results?
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Solution: Suppose you are collecting data from a country like Japan