Question

The demand for health care in industrially advanced economies is highly elastic:

Answer 1

Answer:

This statement is false for two reasons:

1. Most industrialized nations offer public health care services, only the US and Switzerland do not, so the private demand is virtually nonexistent. The few private health care providers are extremely expensive, so the demand is extremely price inelastic.
2. In the US, the demand for health care is price inelastic, it has never been price elastic. Besides economic and social considerations about the price of healthcare, when you get sick, you want to get cured. You are not going from one clinic to another, or from one hospital to another checking which charges you a lower fee. You generally know what hospitals or clinics are more expensive than others on a general term, but not on every specific treatment.

Answer 2

Answer:

about unit elasticity  with respect to income and relatively inelastic  with respect to price

Explanation:

The demand for health care in industrially advanced economies is about unit elasticity  with respect to income and relatively inelastic  with respect to price

Health is a necessity that is worth more than wealth and by so doing its demand is inelastic because people cannot afford to remain sick because the price of medication is too 'high' to pay. This underscores the reason why medical corporations try to fix prices for certain products and the government relentlessly keeps monitoring the price of those drugs so that people can afford them.

In relation to Income however, people tend to be willing to afford more health care in line with their level of income. This determines why health insurance companies sell different health packages to different class of workers according to their income level.