Health Demand, Elasticity, Principle and Agent in Determining Demand Coursework

Health Demand, Elasticity, Principle and Agent in Determining Demand for Medical Care - Coursework ExampleThe cited unique factors may be sort out within the health status variable that impact expectation but their role are far too important in the healthcare saddle horse to be relegated as a mere sub-factor. This is the case because the patients are the ones seeking care and that penury is initiated based on their healthcare needs. Afterwards, the physician then prescribes the beat as well as type of treatment/medical product or service to be needed. For instance, a person is admitted into emergency care because of distasteful diabetes. Upon examination, the physician has determined that one of his legs has to be amputated in order to save his life. Here, the demand for the surgery and the medications entailed were determined based on the condition of the patient and the brain of physician. I believe that if the patient is insured the impact of income and price may be diminish ed. This can also be highlighted in the dynamics behind the discipline of price and its impact on demand. In conventional goods, a decline would precipitate demand. However, in the case of health care a decline in price, say, of a diabetes drug, would not immediately translate into demand or a significant change in the demand curve because it will be unfree on the number of diabetics and their need and health status. Imagine a situation where consumers have incomplete information about their health status and about the productiveness of medical care. Examine the roles of the principal and the agent in helping consumers to determine the demand for medical care in the described situation. Provide at least one (1) detailed example of such roles in action to support your response. Let us suppose that the patient is covered by medical insurance. He is, in effect, the principal in this situation while the physician serves as his agent, acting in his best interest since his decisions are made to improve the patients well-being. This is the perfection scenario where the agent recommends care services and medications for the clients benefit. For instance, the physician could prescribe highly-paid and, therefore, effective procedures. The patient without any medical knowledge as to his condition or the treatment would not have known the difference between such procedures and low-paid primary care. But the condition and the physicians influence move the demand curve towards highly-paid care and specialties.