Health Economics and Policy
7th Edition
ISBN: 9781337106757
Author: James W. Henderson
Publisher: Cengage Learning
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Question
Chapter 5, Problem 2QAP
To determine
To identify the similarities as well as the differences between the medical care and the other commodities.
Expert Solution & Answer
Explanation of Solution
Medical care is different and unique among all the other commodities. The differences as well as similarities can be identified as,
The Differences
Healthcare is not considered to be a normal consumer choice
Patients’ lack of knowledge on what they are doing
Healthcare is not actually a business
Most of the time it has the inference from a third party namely, the insurance provider
The healthcare market itself finds its equilibrium which won’t be acceptable by the public most of the time
The Similarities
There’s always a buyer and a seller
Prices have been set to all the healthcare services just like the other commodities
Patients can choose from a variety of hospitals and doctors
Availability of substitutes especially for not-for profit and public hospitals
Economics Concept Introduction
Introduction:
The objective of this study is to analyze the similarities as well as the differences between the medical care and the other commodities.
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QUESTION 3
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141
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Chapter 5 Solutions
Health Economics and Policy
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