1. Why might a consumer be "rationally ignorant" about the proper therapy for gallstones?

 

2. Why do demand curves slope down (i.e., sales volume usually rises at lower prices)?

 

3. Why would consumers ever choose insurance plans with large deductibles?

 

4. During the last five years, average daily occupancy at the Autumn Acres nursing home has slid from 125 to 95 even though Autumn Acres has cut its daily rate from $125 to $115. Do these data suggest that occupancy would have been higher if Autumn Acres had raised its rates? What changes in nonprice demand factors might explain this change? (The suppyl, or the number of nursing home beds in the area, has not changed during this period.)

 

5. Your hospital is considering opening a satellite urgent care center about five miles from your main campus. You have been charged with gathering demographic information that might affect the demand for the center's services/ What data are likely to be relevant?

 

Answer rating: 100% (QA)

1 A consumer might be rationally ignorant about the proper therapy for gallstones because the consumer may not find it worth the time and effort to fu... View the full answer