HGMT310 University of Maryland Law of Demand and Inelastic Demand Questions

Respond to the question below that has been assigned to you (see this week’s announcement for assignments) by this Thursday and then respond to TWO of your classmates responses (in an area different than your initial response) by Sunday. Please try not to replicate other’s responses and include the topic you are responding to at the beginning of your post.

  1. What exactly is the law of demand? Why does the demand curve generally slope downward?
  1. Explain the price elasticity of demand? Why is this important when looking at the demand for health care?
  2. What does it mean if a good has inelastic demand? Provide an example of an inelastic good?
  3. What factors lead to a shift in the demand curve for healthcare?
  4. What do we mean when we say goods are substitutes? Provide an example related to health care.
  5. What do we mean when we say goods are complements? Provide an example related to health care.
  6. Economists agree that the healthcare market is characterized by “asymmetric information,” what does this mean exactly?
  7. What does diminishing marginal utility mean?
  8. Health care has both a consumption component and investment component? What is the investment component and can you provide an example?