Question

If the cost of a medical visit/ co-pay increases, how does this affect the demand for this item?

Answer 1

How does increase in cost affect the demand for item

• If the cost goes up, the quantity demanded goes down
• Demand by definition is an economic concept that describes consumer's desire to pay a price for goods or services
• A rise in price of a good or service will reduce demand and a decrease in price of a good or service will increase it's demand
• In a healthcare setting every consumer is structurally, chemically, and emotionally different.
• What works for one person may not be work for another
• The demand for healthcare comes from desire of the consumer to gain good health.
• The money consumer spends on being healthy today will also benefit the consumer in the future
• If the consumer is sick and requires medical care, the consumer will purchase healthcare services at almost any price.
• The consumers’ ability to purchase healthcare is ultimately limited by the customers’ income
• The consumers are likely to trade off spending on many other products to purchase the medical care needed.