Question

Do you think the price elasticity of demand for health care is elastic, unit elastic, or...

Do you think the price elasticity of demand for health care is elastic, unit elastic, or inelastic, and why? Would this have any impact on whether health care is considered a right or not?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Since the elasticity of demand can be defined as the measurement of the degree of the responsiveness of the quantity demand due to the change in the price level.

Price elasticity of demand= % change in the quantity demand/ % change in the price

If Ed is greater than 1, then the demand is elastic. If Ed is less than 1, then the demand is elastic.

The price elasticity for the necessary good is inelastic and for luxury good, it is elastic.

The demand for health care has inelastic demand because it is a necessary goods and services and it has not substitute.

Since the price elasticity of demand for health care is inelastic and it is one of the basic needs of the people. Hence health care is considered right because it increases the social welfare.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
USING the determinants of price elasticity of demand, discuss whether you think the price elasticity of...
USING the determinants of price elasticity of demand, discuss whether you think the price elasticity of demand for cherries are to be inelastic or elastic?
What is your elasticity of demand for going to this school? Is it elastic, inelastic, or...
What is your elasticity of demand for going to this school? Is it elastic, inelastic, or unit elastic? Explain your reason. If tuition rose 10%, what would you do? What is your elasticity of demand for gasoline? is it elastic, inelastic, or unit elastic? explain your reason. If gas prices rose 10%, what would you do? What is your elasticity of demand for movies?, is it elastic, inelastic or unit elastic? Explain your reason. if movie ticket prices rose 10%,...
What is price elasticity of demand? What determines whether a product’s demand is elastic, inelastic, unitary...
What is price elasticity of demand? What determines whether a product’s demand is elastic, inelastic, unitary elastic, perfectly elastic and perfectly inelastic? What is mid-point formula to determine the elasticity of demand and why is it important to use it instead of the general formula for elasticity? Carefully explain.
Would you expect the elasticity of demand to be different for hospital care, physician visits, insulin...
Would you expect the elasticity of demand to be different for hospital care, physician visits, insulin for diabetes, plastic surgery, mental health care, and emergency room visits? Why or why not? Do you think one is likely to be more elastic than the others? Which one do you expect to me the most (least) elastic? What does the evidence show about elasticity of demand for hospital care, physician visits, mental health care, plastic surgery, and emergency room visits, if anything?
Categories of Price Elasticity of Demand For each of the following values for price elasticity of...
Categories of Price Elasticity of Demand For each of the following values for price elasticity of demand, indicate whether demand is elastic, inelastic, perfectly elastic, perfectly inelastic, or unit elastic. Also, indicate (increase, decrease, no effect) what would happen to total revenue if a firm raised the price in each elasticity range. Price Elasticity of Demand equals Descriptionn of Elasticity Total Revenue Change -2.5 -1.0 -0.8 -infinity 0
Is price elasticity of demand at GCU elastic or inelastic? What could you do to find...
Is price elasticity of demand at GCU elastic or inelastic? What could you do to find out?
1) Firms are interested in the magnitude of the price elasticity of demand coefficient. The magnitude...
1) Firms are interested in the magnitude of the price elasticity of demand coefficient. The magnitude of ?? determines whether the demand for a good or service is elastic, inelastic or unit elastic. For the following cases indicate whether demand is elastic, inelastic or unit elastic. 1 < |??| < ∞ |??| = 1 0 < |??| < 1 2) 2, What happens to the absolute value of the price elasticity of demand as you move up a demand curve?
The price elasticity of demand for a product is -0.5. You know that... Demand for this...
The price elasticity of demand for a product is -0.5. You know that... Demand for this product is inelastic. Demand for this product is neither elastic or inelastic. It is "unit elastic." Demand for this product is elastic. Not enough information to answer this question.
Drawing on the influences (determinants) of price elasticity of demand, explaining whether the demand for petrol...
Drawing on the influences (determinants) of price elasticity of demand, explaining whether the demand for petrol in Australia is elastic or inelastic. Illustrate the effect of price drop on the total revenue of a petrol station. Part 1: explain whether demand for petrol is elastic or inelastic by exploring the determinants of price elasticity of demand. Part 2: explain and illustrate the impact of price rise on total revenue of a petrol station. You may draw a graph.
Suppose the price elasticity of demand for cheerios is -0.88. If so, the demand for it...
Suppose the price elasticity of demand for cheerios is -0.88. If so, the demand for it is ______. (Elastic, Inelastic or Unit-Elastic)? Assuming its price elasticity of demand changes to -0.21. Then the demand for it is _____. (Elastic, Inelastic or Unit-elastic)?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT