The concept of _____ does not work well when applied to health care because the general rule that when the price of an item or service goes up, the demand goes down does not necessarily impact the public's demand for (or belief in their right to

Question

obtain) this item or service. a. Price elasticity c. Economics
b. Scarcity d. Cost maximization

Answer 1

A
Price elasticity refers to the price that a person is willing to pay for any given item. The general rule
states that when the cost of an item or service goes up, its demand goes down; however, this principle
does not always apply when dealing with health care issues due to the public's belief that they are
entitled to the best available health care, state-of-the-art treatments, and innovative new techniques and
medications, many of which are expensive due to their newness and the overhead to produce them.