Question

In: Economics

Explain how the presence of health insurance affects the demand for health care.

Explain how the presence of health insurance affects the demand for health care.

Solutions

Expert Solution

Demand requires higher quality transactions or uses by individuals and when persons use medical facilities, health insurancers are requested, so that supply increases further if supply increases demand.
Market systems mean the number and demand for goods and services produced on the market because of good quality.
Health insurance impacts both the decisions made by consumers and the manufacturers. The health insurance services may be of greater concern to lower incomes and to non-insured persons than those on high incomes.
The only reason they take fewer decisions on health insurance is because of a lack of education and numerical skills among customers.
Thus they will also demonstrate interest in providing good education and in describing health insurance benefits.
If the health insurance programs were determined, these would also resolve illness issues.
If the producer wants to provide health insurance quality services, that is also attracted by the consumers.


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