Chapter 7, Problem 8E

What is the relationship between health and health economics?

3rd party payments often cause the cost of health care to go down does third party payments to cover medical costs bring the price of medical services up?

Suppose that a study finds that the price elasticity of demand for MRI's is 0.3 (in absolute value). If the price of care were to ___ by 3%, we would expect the quantity of preventative care consumed to fall by ____%. Suppose that a study finds that the price elasticity of demand for MRI's is 0.3 (in absolute value). If the price of care were to ___ by 3%, we would expect the quantity of preventative care consumed to fall by ____%. a. fall; 0.3% b. rise; 0.9% c. rise; 0.3% d. fall; 0.9%

Which kind of externality problems exists in the market for medical checkup? How does this externality problem affect the efficiency of the market? Explain in detail.

Discuss what is known about price elasticities of demand for various health care services.   Needs to discuss acute, chronic, well, dentistry; hospital, ambulatory

What are the purpose of individual enterepreneur? What are the few advantage or merits of individual enterepreneur?

Discuss the kind of pressure the Health Maintenance Organizations (HMO) exerted on the price of drugs.

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?

Apply the concept of equilibrium in the health market or medicine practice