How does the law of demand and supply affect the production, and consumption of healthcare services?

Answer 1

The demand for health care is very inelastic for most individuals, that is they do not go to doctors and dentist, except of occasional check ups, when they are not sick no matter how cheap the price, and the will go when injured or sick, going into debt if necessary to pay for it. Therefore the overall demand depend mostly on the number of people and the health of the population. Most health care workers respond to wages like other workers in the labor market, but the introduction of new drugs and technologies increase the production cost. Many life extending treatments increase the fraction of sick people in the population so has a feedback on the demand, so it behaves almost like a giffin good, the higher the price the more is consumed.

Answer 2

When there is a great demand for health care services such as we are about to have in the next few years as the graying of America causes the demand for services to go up unless the supply of services increases the cost of services could go up. If the supply of services keep up with the demand or manages to exceed the demand then the cost of health care services could go down. Sad to say the latter rarely happens so we Baby Boomers can look forward to some expensive health care cost in the future. If Hilary Clinton gets voted in we could have a little help from the government.

Answer 3

In health care services or any service sector like hotel or barber, the demand is inelastic. There may be 100 barbers or doctors or hotels in a town but people go to only a select barber/doctor/hotel. This is the speciality of service industry. In case of manufacturing industries, demand is elastic.

Answer 4

The regulation of grant and insist actual does carry on with to luxuries and antiques many times. What does the regulation of grant and insist say will ensue? in basic terms that cost will equate grant and insist. the quantity of antiques is fastened yet call for isn't and the fee has been bid as much as a level the place in basic terms particular people can locate the money for them and that they are prepared to pay that cost for them. that's called valuable call for and that's the only call for that particularly concerns; i could desire to have a Picasso in my front room yet I even have been priced out of the industry because of fact I in basic terms make $60k a year and it may take me one hundred years to locate the money for one. cost has equated grant and insist. Granted, whether, there are some luxuries that don't carry on with grant and insist yet this phenomenon won't be able to be prolonged to all luxurious products. those products are formally referred to as Veblen products, after the guy that first validated the phenomenon. Veblen products are products that prosperous people use to reveal their wealth, so as that they adjust into greater captivating as their cost rises.