Respond to each of the following questions (150-200 words each) that apply the economic concepts described in this topic’s assigned readings in The Economics of Health and Medical Care.
- Write the formula for price elasticity of demand and describe what it means.
- How would you expect the price elasticity of demand for health care to vary with health status?
- Would the demand for health care increase or decrease with an improvement in educational attainment in the community?
- Studies using macroeconomic data indicate higher income elasticity for health care. Does that make health care an inferior, normal, or superior good? Explain.
- Describe the components of time cost in health care. Is time less costly for patients with higher wage rates? Explain.