Demand for Health & Healthcare - Utility theory & health care demand

4 important questions on Demand for Health & Healthcare - Utility theory & health care demand

Consumer demand is determined by?

Consumers who maximize utility subject to a budget constraint.

How do you find the optimal consumption bundle?

HC1, OG1, where an indifference curve U is tangent to the budget constraint B.

What does the determinant 'Budget' mean?

Income, it determines the position of the budget restriction
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

What does the determinant 'Prices' mean?

The prices of healthcare and other goods, it determines the slope of budget restrictions.

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo