Assignment: Health Demand

Assignment: Health Demand
Assignment: Health Demand
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“Health Demand, Elasticity, Principle and Agent in Determining Demand for Medical Care” Please respond to the following:
From the e-Activity, compare the primary individual factors that influence demand, and explain the significant ways in which each affects the demand curve. Provide at least one (1) example of these factors to support your rationale.
Imagine a situation where consumers have incomplete information about their health status and about the productivity of medical care. Examine the roles of the principal and the agent in helping consumers to determine the demand for medical care in the described situation. Provide at least one (1) detailed example of such roles in action to support your response.
What is health care demand?
Demand for health care is characterized by the level of actual consumption of an individual incase of facing illness/injury, this consumption could differ in accordance with demand factors such as income, cost of care, education, social norms and traditions, and the quality and appropriateness of the services provided
Is healthcare a normal good?
A normal good, also called a necessary good, doesn’t refer to the quality of thegood but rather, the level of demand for the good in relation to wage increases or declines. A normal good has an elastic relationship between income and demand for the good.
What is health economics and why is it important?
Health economics is a branch of economics concerned with issues related to efficiency, effectiveness, value and behavior in the production and consumption ofhealth and healthcare. In broad terms, health economists study the functioning of healthcare systems and health-affecting behaviors such as smoking.

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