Answer to Question #306839 in Microeconomics for Yabu

Question

assume that the patient is member of CBHI and this person is supposed to pay 20% of the user fee and will be refunded 80% of the user fee. Based on this information and the above demand equation, a) Develop demand schedule and curve. b) Compare the two graphs and explain the effect on the demand for health of the patient

Answer 1

The demand for healthcare depends on the level of consumption of an individual in case of illness. It is seen that consumption can differ according to the factors affecting the demand which may include; service price, social traditions, income, education, quality, and norms.