Chapter 6. Economics for Healthcare Managers
6.12 The price-quantity relationship has been estimated for the new
prostate cancer blood test: Q = 4,000 – 20 × P. Use a spreadsheet to
calculate the quantity demanded and total spending for prices ranging
from $200 to $0, using $50 increments. For each $50 drop in price
calculate the change in revenue, the change in volume, and the
additional revenue per unit. Call the additional revenue per unit
marginal revenue.
6.13 A physical therapy clinic faces a demand equation of Q = 200 – 1.5 × P,
where Q is sessions per month and P is the price per session.
a. The clinic currently charges $80. What is its sales volume and
revenue at this price?
b. If the clinic raised its price to $90, what would happen to volume
and revenue?
c. If the clinic lowered its price to $70, what would happen to
volume and revenue?