Asked by William Burgan on Jun 14, 2024
Verified
Reasons for the rapid rise in demand for health care despite steeply rising prices include the following, except
A) people regarding health care as an entitlement or a right.
B) imperfect information among consumers of health care.
C) third-party insurance payments shielding consumers from the true cost of health care.
D) high income-elasticity of the demand for health care services.
Third-Party Insurance
Insurance coverage purchased by the insured from an insurer for protection against claims by another party, typically used in liability insurance.
Imperfect Information
A situation in a market where all parties do not have equal access to relevant information, leading to inefficiencies in decision-making.
- Analyze the reasons behind the rapid rise in health care demand.
Verified Answer
JG
Jeron GallimoreJun 14, 2024
Final Answer :
D
Explanation :
High income-elasticity of demand for health care services would imply that as people's incomes rise, they would demand more health care services, which is a factor that could contribute to the rise in demand. However, the question asks for factors that are exceptions to the reasons for the rapid rise in demand despite rising prices. High income-elasticity does not explain the rise in demand in the face of rising prices in the same way that the other options do, which involve systemic issues and perceptions about health care.
Learning Objectives
- Analyze the reasons behind the rapid rise in health care demand.
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