00:01
So here we're talking elasticity, and we're told the elasticity is minus 0 .25, and we should remember that the price elasticity is telling us about the change in quantity with respect to the change in price.
00:14
Now, we know something about the change in price, right? the price is going from 20 to 25.
00:22
And the percentage change in price, therefore, is in the world of elasticity usually defined as a midpoint.
00:30
Now, i don't know if you use midpoint percentage changes for elasticity, but that's typically how it's done.
00:37
So the new price is 25, the old price is 20, the midpoint is 22 .5.
00:43
So to get the percentage change in price, we would just plug that into our calculator.
00:50
And that would give us a 22 .2 % change in price.
00:54
Now if you don't like this, you can just use old, you can use 20, and then you're going to get 25%.
01:01
Both of those are probably correct, but i would say that most economics instructors are using, i'm going to, are using midpoints, right? are probably using midpoints.
01:13
So we have 40 ,000 patients, right? so we have an original quantity of 40 ,000...