Price Elasticities Of Demand For Various Health Care Services

Health care Name: Institution: Course: Date; HEALTH CARE One of the most interesting elements about the price elasticity when it comes to health care services is that it does not follow the normal demand and supply curves. Unlike other basic goods and services this is a commodity that does not obey the demand and supply curve. The element of demand that is associated with the health care services is largely inelastic. This is to mean that the element of price does not affect the demand for the services (Phelps, 2016). Unlike most services and goods they do not follow the normal law when the price changes the demand (Riley, 2018). The same is also the case when the price for the health care services does not affect the demand for the services in question. There is a debate as to what is the determinant when it comes to the specialty elements that come into play when a physician is looking to specialize in a given area. One of the most common elements is associated with the economic aspects of the position and the direction that the physician is looking to direct their career (Chang, Hung, Wang, Huang & Chang, 2006). Where there are more hospitals, there is a higher level of utilization in the sense that patients have more options. This is to mean that, patients are able to choose between different hospitals and more importantly between physicians (Phelps, 2016). As such, the level of utility is quite high given the fact that patients are able to choose between what they want and what they can afford. This gives them the ability to review prices and quality of services. As such, where there is more than one option, the patients are able to review their options relative to their resources and needs and come up with the best options that they can have. This gives a utilitarian approach in the sense that they...