Demand in Health Care
Demand is a key economic concept, which differs notably from need. Yet, both of these concepts figure significantly into health care delivery. For instance, physicians draw on their professional expertise to determine what a particular patient needs. Insurers, however, think more in terms of demand and use the concept to make decisions for allocating medical goods and services among groups of patients. As a health care leader, it is important to consider the intricacies of these concepts and how they affect the health care industry.
Write a cohesive response that addresses the following:
- Provide an example of demand for health care services or goods that demonstrates the law of demand. Make sure that your posting addresses an example that is different from the ones already posted by your group members. (Do not post an example related to health insurance, as this topic will be addressed in the Application.)
- In this example, would you expect demand to be elastic or inelastic? Explain why you think so, and discuss factors that could impact the elasticity or inelasticity of demand based on your understanding of the concepts and this particular area of health care.
- How would you illustrate rational choice using this example?