Healthcare Economics

In Your Reply posts in the Discussion Forum In your reply to peer posts in the discussion forums please contribute to knowledge in the forum. Your contribution should not be only through your initial response post. So, in your reply to posts, don’t just agree with your peer. Review what your peer wrote and comment only if you have something significant and worthwhile to add to the discussion. Please note that in your reply discussion posts, your responsibility is to contribute to class knowledge and learning on the question posed to us in the class. So, don’t post: “. . . good job”, “. . . well done”, “. . . good post”, “. . . I agree” etc. #1: Respond to Krystal’s Initial Post: 5. (a) What do we mean when we say goods are “substitutes”? (b) Provide at least one example of healthcare-related “substitutes”. (a) Goods are considered substitutes when consuming one good reduces the desire or need to consume another good. In other words, substitutes are products that can be used interchangeably to satisfy a particular want or need. When the price of one substitute rises, consumers tend to shift their demand towards the other substitute, as it becomes relatively cheaper. This relationship between substitutes is captured by the concept of cross-price elasticity of demand, where a positive value indicates that an increase in the price of one good leads to an increase in the demand for the other good. (b) An example of healthcare-related substitutes is the choice between prescription medications and alternative treatments or therapies for managing certain health conditions. For instance, individuals diagnosed with chronic pain may have the option to either purchase expensive prescription painkillers or opt for alternative treatments such as physical therapy, acupuncture, or herbal remedies. References Lee. R. (2019). Economics for healthcare managers. (4th ed.). Health Administration Press. Mankiw, N. G. (2014). Principles of microeconomics. Cengage Learning. #2: Respond to Grace’s Initial Post: 4. (a) Provide at least two factors that would lead to a shift in the demand curve for healthcare. (b) Explanation of how these can happen. (a) Two factors that would lead to a shift in the demand curve for healthcare include changes in population and income changes(Lee, 2019) (b) In population changes, an increase in population typically leads to a higher demand for healthcare services as more people require medical attention. For example, an aging population may lead to an increased demand for healthcare services because older individuals generally require more medical care. In income changes when the public experiences an increase in income, they may demand more healthcare services because they can better afford treatments or preventive care. On the other hand, a decrease in income might lead to a reduction in the demand for healthcare services as people may prioritize essential spending and reduce visits to healthcare providers. References Cambridge Dictionary. (n.d.). Word. In Cambridge Dictionary. Retrieved May 25, 2024, from Cambridge Dictionary https://dictionary.cambridge.org/dictionary/english/substitu te Lee, R. (2019). Economics for Healthcare Managers (4th ed.). Chapter 7: The Demand for Healthcare Products.