Question

Is short-run demand for Medical care and hospitalization item elastic or inelastic? Explain. Is long-run demand for this item elastic or inelastic? Explain.

Answer 1

Answer - Health care is a matter of necessity amd if the requirement arises , health problems occur , then it cannot be avoided. Specially in the short run , with no alternative around except opting for hospitalisation amd other health care techniques , the price elasticity of demand is Very Much Inelastic for the health care.

In the long run too , the demand does not get into elastic phase , but is comparatively more elastic because of the alternatives such as the Yoga etc which provide the good health and reduce the need for health care.

But summarising both the time periods , the demand for health care remains inelastic.