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The purpose of this assignment is to describe economic concepts related to health care.

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Respond to each of the following questions (150-200 words each) by applying the economic concepts described in this topic’s assigned readings from The Economics of Health and Medical Care.

  1. Write the formula for price elasticity of demand and describe what it means.
  2. How would you expect the price elasticity of demand for health care to vary with health status?
  3. Would the demand for health care increase or decrease with an improvement in educational attainment in the community?
  4. Studies using macroeconomic data indicate higher income elasticity for health care. Does that make health care an inferior, normal, or superior good? Explain.
  5. Describe the components of time cost in health care. Is timeless costly for patients with higher wage rates? Explain.

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