Essay on Econ 545 Micro Analysis Project 1

1836 Words Oct 23rd, 2014 8 Pages
Michele Jimenez
Business Economics 545
Fewer Physicians
Project 1
July 27, 2014

INTRODUCTION
Based in recent surveys, reports show a trending decline on the rate at which physicians move. Statistically, this may suggest the economy is preventing or affecting physicians from frequent job changes, or retirement. According to survey results, the move rate was reported as follows: 18.2% in 2008, 15% in 2009, 12.4% in 2010, and 11.3% in 2011. In as much as this reflects an obvious trend of lower move rate over the years, and may be attributed to a number of factors, it is however not enough scientific measure to ascertain the market supply and demand for physicians.
PURPOSE:
The purpose of this paper is to analyze the current position
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To summarize the concept, when the price of a product falls, the quantity demanded of the product will increase, and conversely, when the price of a product increases, the quantity demanded of the product will decrease, where all other relevant factors are constant. (Glen, 2012).
Below is a Typical Demand Curve:
Fig. 1

For this study, Demand is the request of the patient for medical care services. The physician demand estimates are based on recent healthcare utilization and healthcare delivery patterns. In determining this, health care use is translated into the demand for physician services, and then into demand for physicians. Current patterns of utilizing physician services is regarded as the level of services for which the U.S. is able and willing to pay. The demand determinants are based on the projection for future demand trends in one or more of the following three major factors:
Changing demographics. High use of physician services by a rapidly growing elderly population suggests that demand for physicians will grow at a faster rate than the overall population. The impact of changing demographics on physician demand is modeled by estimating physician-to-population ratios based on current patterns of healthcare utilization and delivery. I would consider the effect of the aging baby boom generation on the economy as an example. Older people have a greater demand for medical care than…

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