Stuck of Econ3 QuestionWatch
"Distinguish between price elasticity of demand and income elasticity of demand, and analyse why, when people have medical insurance, the price elasticity of demand for
medical treatment might be ‘very low’ while the income elasticity of demand is ‘likely to
be high’ (Extract E, lines 22 to 24). (10 marks)" What would you write for this?
I don't know what I'd write for this: "The supply and use of water result in many externalities, both positive and negative’ (Extract B, line 16).
Using the data and your economic knowledge, evaluate UK government policies that
could be used to deal with problems associated with the supply and use of water.
(25 marks)" ?
Thanks for any help
Define Price Elasticity of Demand, and define Income Elasticity of Demand (Add in their formulas)
Then simply do links in the chain. When people have medical insurance, the PeD is low as changes in the price have little effect on people`s demand for it, since medical insurance is for our wellbeing so we need it
The income elasticity of Demand is high because when our income increases, we have more money we can pay towards the insurance, thus we will spend more and demand will rise for it
Will do the second one later for you, quote me if you need any more help on the 1st one