To identify the similarities as well as the differences between the medical care and the other commodities.
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
Introduction:
The objective of this study is to analyze the similarities as well as the differences between the medical care and the other commodities.
Want to see more full solutions like this?
Chapter 5 Solutions
EBK HEALTH ECONOMICS AND POLICY
- What would be the effects on price and quantity if physicians can induce demand?arrow_forwardWhat are the differences and similarities between health economics and other forms of economic study?arrow_forwardDo countries with national health insurance programs have lower average medical costs than the United States? Is cost of care correlated with quality of care?arrow_forward
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, IncEconomics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning