EBK MICROECONOMICS
12th Edition
ISBN: 9780100659452
Author: PARKIN
Publisher: YUZU
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Chapter 8, Problem 27APA
To determine
Rationing of health care.
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Students have asked these similar questions
Draw a graph showing how demand for medical care changes under health insurance where the insurance policy pays a % of costs.
What happens to demand elasticity?
Amount purchased at any price?
What does this say about the effect of health insurance on individual vs. social “perceptions” of health care cost and benefit?
Please answer the following questions thoroughly:
Some argue that the price elasticity of demand can be used to determine whether a good or service is a luxury or a necessity. In medical care, a procedure with an elastic demand would be considered optional, or elective, and a procedure with an inelastic demand would be a medical necessity.
1) Should planners use price elasticity of demand as a guide to defining services that are medically necessary?
2) What are the advantages of such a classification scheme?
3) What are the drawbacks?
Demand studies in health care have provided estimates of both income and price elasticity. Estimates of income elasticity are usually above +1.0 and estimates of price elasticity typically range between −0.1 and −0.75 (with hospital services at the lower end and elective services at the upper end). What is the significance of these estimates to policy makers?
Chapter 8 Solutions
EBK MICROECONOMICS
Ch. 8.1 - Prob. 1RQCh. 8.1 - Prob. 2RQCh. 8.1 - Prob. 3RQCh. 8.1 - Prob. 4RQCh. 8.2 - Prob. 1RQCh. 8.2 - Prob. 2RQCh. 8.2 - Prob. 3RQCh. 8.2 - Prob. 4RQCh. 8.3 - Prob. 1RQCh. 8.3 - Prob. 2RQ
Ch. 8.3 - Prob. 3RQCh. 8.3 - Prob. 4RQCh. 8.3 - Prob. 5RQCh. 8.4 - Prob. 1RQCh. 8.4 - Prob. 2RQCh. 8.4 - Prob. 3RQCh. 8.4 - Prob. 4RQCh. 8 - Prob. 1SPACh. 8 - Prob. 2SPACh. 8 - Prob. 3SPACh. 8 - Prob. 4SPACh. 8 - Prob. 5SPACh. 8 - Prob. 6SPACh. 8 - Prob. 7SPACh. 8 - Prob. 8SPACh. 8 - Prob. 9SPACh. 8 - Prob. 10SPACh. 8 - Prob. 11SPACh. 8 - Prob. 12SPACh. 8 - Prob. 13SPACh. 8 - Prob. 14SPACh. 8 - Prob. 15SPACh. 8 - Prob. 16APACh. 8 - Prob. 17APACh. 8 - Prob. 18APACh. 8 - Prob. 19APACh. 8 - Prob. 20APACh. 8 - Prob. 21APACh. 8 - Prob. 22APACh. 8 - Prob. 23APACh. 8 - Prob. 24APACh. 8 - Prob. 25APACh. 8 - Prob. 26APACh. 8 - Prob. 27APACh. 8 - Prob. 28APACh. 8 - Prob. 29APACh. 8 - Prob. 30APACh. 8 - Prob. 31APACh. 8 - Prob. 32APA
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- If the government wishes to make its population pursue a healthier lifestyle by creating a reduction in the demand for packets of cigarettes, examine and discuss how this can be implemented without government having to directly increase the price of a packet of cigarettes. Motivate your answer with a diagram.arrow_forward10. Consider the following table based on the article "The effect of prices on nutrition: Comparing the impact of product- and nutrient-specific taxes" by Matthew Harding and Michael Lovenheim in the Journal of Health Economics (53: 53-71). Good Strawberries Watermelons Carrots a. Price Elasticity of Demand - 1.128 -0.830 - 1.379 C. Which of the above are normal goods? How do you know? b. If average income decreases by 5 percent, calculate the change in demand for strawberries: The demand for (circle the correct answer): Strawberries is Watermelons is Income Elasticities 1.625 1.134 0.943 Carrots is d. Strawberries and (circle the correct answer: Watermelons are Cross Price Elasticity with Strawberries 1 Carrots are -0.058 0.025 Elastic / Inelastic Elastic / Inelastic Elastic / Inelastic Substitutes/complements Substitutes/ complementsarrow_forwardIn what direction will shift the demand curve for antiviral drugs in the winter season? Draw the graph.arrow_forward
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