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Thanks! Had that wrong, or remembered it incorrectly. NYT says 10% in another article. Its still considerable. Have to take into account that a 5% reduction in
by conanbatt 9y ago
Thanks! Had that wrong, or remembered it incorrectly. NYT says 10% in another article.
Its still considerable. Have to take into account that a 5% reduction in price can lead to a much higher increase of consumption than 5%, particularly on things like healthcare in the us that have clear excess demand.
- fjsolwmv 9y agoHow is it possible for 5% decrease in price to cause ore than 100/95 consumption, if medical care is already a top priority for spending?
- conanbatt 9y agoBecause there are people that do not get healthcare today because it is above their affordability. If net income for a large amount of people is 100 U$S, and healthcare service costs 101U$S, the jump from 101 to 96 would surge in demand. Medical services have low elasticity but there are millions of people in america not getting medical service.