In the traditional competitive model of healthcare supply and demand
a. supply plays a passive role. |
b. a change in supply does not affect the level of demand (does not change the position of the demand curve). |
c. a change in supply affects the level of demand (changes the position of the demand curve). |
d. A & B. |
e. A & C. |
ANSWER- OPTION B
A change in the supply does not affect the level of demand
REASON - The reason behind this is that in the healthcare sector the demand for the heath care goods and services is almost inelastic.
The healthcare demand does not depend upon the price or the supply . If the person is ill he will definitely demand the health care at utmost price at which it is available because life is most important. Hence the supply does no affect the demand for the healthcare because of its inelastic nature and the person love for life.
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