Benefits Of Medical Devices For The Baby Boomer 's Future Essay

930 Words4 Pages
Introduction Over time, the importance of medical devices will rise. Nearly 10,000 of consumers born between 1946 and 1964 (i.e. Baby Boomers) will retire each day (Friedburg, 2016), and there is a reasonable assumption that a necessary medical device is in the Baby Boomer’s future. Many will sustain a professional career later in life; and, as such, medical device designers will need to fashion products aligned with a mature population’s lively lifestyle (Kapec, n.d.). Johnson & Johnson (J&J) is aware of the upcoming importance of medical devices, and will look at price elasticity, non-price factors, the industry as a whole and its market equilibrium, and related decisions based on the information. Elasticity New medical devices entering the market affect prices. As such, analyzing the price elasticity of supply 〖(E〗_s) and demand (E_p) is imperative. Measures in elasticity are chiefly valued because they center on the comparative degrees of changes rather than the absolute (Ringel et al, n.d.). Depending on geographic region, total hip replacements in 2013 tallied from $4,400 to $17,301 (i.e. average of $10,850.50) (BCBS, 2015). In 2010, a total of 2.5 million Americans underwent total hip replacement (Kremers et al, 2015). If J&J markets a new artificial hip that lowers the overall average cost by five percent (e.g. $10,307.98) while increasing overall supply by ten percent (e.g. 2.75 million), the price elasticity of supply is two. Because the supply is

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