The Jefferson National Life Insurance Company
June 7th, 2024
The Jefferson National Life Insurance Company offers a wide variety of insurance products, including whole-life and term policies. The company has compiled the following data concerning policy sales during recent years:Whole-lifeTermYear*PriceQuantity*PriceQuantity2004$2.00240,000$1.50100,00020052.00200,0001.45130,00020061.90230,0001.45150,00020071.80280,0001.40200,00020081.80238,0001.33270,000What is the point price elasticity of demand for whole-life insurance?What is the point price elasticity of demand for term insurance?Evaluate the percentage change in whole-life demand given a 1% change in the price of term insurance. Is term insurance a substitute for whole-life?