e-activity

 Demand can be described as the set price at which consumers are willing and can buy a commodity. Demand sided barriers impede individuals from getting treatment (Frick et al., 2012).  Demand factors to include income, government influence, and cost of care influence the quality of health care provided. Medical care needs are not emergencies and individuals have the time to make a decision and choose a particular hospital after reviewing factors to include charges of that hospital (Frick et al., 2012). This indicates that the economic theory has much influence on the demand for healthcare since economic factors are put into consideration before receiving healthcare.  Healthcare demand can be termed as inelastic since there is no set price to purchase healthcare services (Frick et al., 2012). An individual’s ability meets their healthcare needs is based on their incomes. For example, this is why there are multiple stories on individuals that have no medical insurance being bankrupted by medical expenses.

 Income is one of the factors that influence healthcare demand, if a healthcare consumer has a low income the consumer is less likely to seek medical attention for common sicknesses (Frick et al., 2012). Contrariwise, the consumer who has a higher income will be willing to spend a relatively high amount on healthcare, when the income for individuals is relatively high the demand curve will shit further to the right and contrariwise (Frick et al., 2012). Government influence is another factor affecting the demand curve for healthcare in the US. Policies to include subsidy increases the demand for healthcare as patient are charged relatively low prices. Lastly, supply is another factor that determines the demand for healthcare, supply dictates the number of services and goods available in a country, supply is determined by demand. The demand curve for healthcare in the US is further to the right since demand for healthcare is higher than the supply.  Most healthcare consumers lack adequate knowledge and do not understand the importance of having a medical care policy, in such cases the principle and the agent should take the responsibility of educating consumers the need of having such policies. The principle and agent should also ensure that consumers are aware of what is expected of them in all matters of healthcare (Frick et al., 2012).  The principle and agent play an important role of dispensing important information to heath care customers.

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Frick, K., Neissen, L., Bridges, J., Walker, D., Wilson, R. F., & Bass, E. B. (2012). Usefulness of economic evaluation data in systematic reviews of evidence.