You are the administrator for a medical practice. assume all of your
The increase in patient cost sharing from 20% to 30% of the charge is likely to decrease the volume of services used by patients and lead to a decrease in expected revenue for the practice. This is due to the fact that when price increases, demand usually decreases, as people are less willing or able to pay for goods or services. The degree of this effect will depend on how elastic (or sensitive) demand is in response to price changes – if it is highly elastic, then a small increase in price can have a large impact on demand (and therefore also on revenue).