Economic Analysis of the Demand for a Product/Service in Healthcare Sector – Physician’s Office

Economic Analysis of the Demand for a Product/Service in Healthcare Sector – Physician’s Office

Your boss has asked you to write a report detailing how the demand for your product(s) is impacted by various economic factors.  In writing your memo, be sure to include your name and in the subject line identify the health care entity you chose above. In order for your boss to easily review your memo, please include section headers to correspond to the questions below.

Answer the following questions relying primarily on the course readings and other resource material presented in this class (do not cite any other outside sources).

1. Describe a product or service your company provides to your patients
2. Evaluate the demand curve for your product and the relationship between the price of your service/product and the quantity demanded.

In this evaluation, be sure to identify:

• whether demand is sensitive (e.g. elastic) or less sensitive (e.g. inelastic) to changes in the price and
• evaluates why this relationship might occur.
• include a discussion of how the existence of health insurance would impact the elasticity of demand.

1. Define “substitute” goods and identify potential substitutes for your product/service. Evaluate how does the existence of a substitute impacts the demand for your product/service.
2. Define “complement” goods and identify potential complements for your product/service. Evaluate how does the existence of complement goods impacts the demand for your product/service.
3. Identify and discuss the economic factors that might lead to a shift in the demand curve for your product/service?

Economics: Theory Through Applications – Table of Contents (saylordotorg.github.io)

Read:

1) Economic Theory Through Applications- Chapter 5.3 Avoiding Risk (p. 155-167)

2) Economic Theory Through Applications- Chapter 5.4 Embracing Risk (p. 168-177)

3) Economic Theory Through Application: Chapter 16.2 Health Insurance (page 718-729)

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