Asked by Marissa Martinez on Jun 12, 2024
Verified
Which of the following terms best characterizes the demand for health care?
A) price elastic
B) price inelastic
C) income inelastic
D) negative cross elasticity
Price Inelastic
A situation where the demand for a good or service does not change significantly when its price changes.
Negative Cross Elasticity
A situation where the demand for one product decreases as the price of another product decreases, indicating complementary goods.
Income Inelastic
Describes a good or service whose demand does not significantly change with a change in consumers' income.
- Grasp the concept of price elasticity as it relates to health care demand.
Verified Answer
JP
Jasmine PeralesJun 14, 2024
Final Answer :
B
Explanation :
The demand for health care is generally considered price inelastic because people will consume health care services regardless of changes in prices, especially in urgent or necessary situations.
Learning Objectives
- Grasp the concept of price elasticity as it relates to health care demand.