Review Case Study $8\mathrm{.}2$

a$.$ Acton$$s estimates suggest that demand is more sensitive to waiting time than to out of

pocket expense$/$price$.$ Why would this be the case?

b$.$ Assume that the entire $10$ percent increase in volume at Christie Clinic is due to the $28$

percent reduction in waiting time for appointments. What elasticity of demand with

respect to appointment waits do the data for the Clinic imply?

c$.$ Why do you feel that patient waiting time results in waiting time for the staff?