Asked by Brittney Hayes on Jul 15, 2024
Verified
A World Bank study found that charging user fees for medical treatment in developing countries dramatically reduced treatment rates, indicating that these medical treatments have elasticities
A) less than 1.
B) greater than 1.
C) equal to 1.
D) equal to zero.
User Fees
Charges levied for the use of a particular service or facility, often imposed by governments or businesses.
Elasticities
Measures of how much the quantity demanded or supplied of a good responds to changes in price, income, or other factors, indicating the sensitivity of demand or supply to changes.
- Understand the concept of elasticity in economic terms and how it relates to consumer behavior in healthcare.
Verified Answer
TF
Tammy FournierJul 20, 2024
Final Answer :
B
Explanation :
Elasticities greater than 1 indicate that the demand for medical treatments is elastic, meaning a small change in price leads to a large change in the quantity demanded. The dramatic reduction in treatment rates upon charging user fees supports this conclusion.
Learning Objectives
- Understand the concept of elasticity in economic terms and how it relates to consumer behavior in healthcare.
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