Lecture 15

Question 1

Why care about economics?

Answer 1

involved in nearly all issue facing healthcare

Question 2

Demand

Answer 2

limited resources influence consumer demand fo healthcare

Question 3

Law of demand

Answer 3

decrese in price= increase in demand”vice versa”

Question 4

WHich demand curve best fits the healthcare system?

Answer 4

graph c. change in demand(curve is same shape but moves over)

Question 5

What factors can lead to a change in demand?

Answer 5

1)price of gooods
2)consumer income
3)number of consumers in the market
4)attitudes, tastes, and preferance of consumers
5)consumer expectations with respect to future prices and income

Question 6

What is elasticity of demand?

Answer 6

measure of how reponsive the reaction to a price change is

Question 7

Which demand curve is most responsive to a price change

Answer 7

A, because it has the largest change in demand for change in price

Question 8

What does it mean to be inelastic?

Answer 8

the price has very little to do with demand

Question 9

What factors impact elasticity of demand?

Answer 9

1)availability of substitutes(more substitutes=more elasticity)
2)price relative to income
(more expensive=more elastic )
3)necessity vs. luxury(luxury=more elastic)
4) short run v. long run

Question 10

change in quantity demandes

Answer 10

assume price changes, price v. quantity

Question 11

change in demand

Answer 11

assume price is held constant, factors impact

Question 12

elasticity of demand