Chapter 5, Problem 2QAP

To determine

To identify the similarities as well as the differences between the medical care and the other commodities.

Explanation of Solution

Medical care is different and unique among all the other commodities. The differences as well as similarities can be identified as,

The Differences

Healthcare is not considered to be a normal consumer choice

Patients’ lack of knowledge on what they are doing

Healthcare is not actually a business

Most of the time it has the inference from a third party namely, the insurance provider

The healthcare market itself finds its equilibrium which won’t be acceptable by the public most of the time

The Similarities

There’s always a buyer and a seller

Prices have been set to all the healthcare services just like the other commodities

Patients can choose from a variety of hospitals and doctors

Availability of substitutes especially for not-for profit and public hospitals

Economics Concept Introduction

Introduction:

The objective of this study is to analyze the similarities as well as the differences between the medical care and the other commodities.