Asked by Alexia Keobangsy on Jun 12, 2024
Verified
In industrially advanced countries, estimates suggest the income elasticity of demand for health care is about
A) +3.
B) +6.
C) −2.
D) +1.
Income Elasticity
A measure of how much the demand for a product changes in response to a change in consumers' income.
Demand
The total quantity of a good or service that consumers are willing and able to purchase at a given price level in a given market.
Health Care
The preservation or enhancement of well-being through the avoidance, identification, management, recuperation, or healing of diseases, ailments, injuries, and other physical and mental conditions in individuals.
- Recognize the impact of income on health care demand.
Verified Answer
TA
Tasha AndersonJun 13, 2024
Final Answer :
D
Explanation :
The income elasticity of demand for health care in industrially advanced countries is estimated to be about +1, indicating that a 1% increase in income leads to a 1% increase in the demand for health care.
Learning Objectives
- Recognize the impact of income on health care demand.