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elasticity of the demand curve

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What can you say about the elasticity of the demand curve that faces the product (or service) produced by healthcare organization? Is it inelastic, elastic, unit elastic? Why? How much does healthcare rely on advertising? What do you think will be the impact of an increase in advertising expenditures by a hospital on the elasticity of the demand curve that your firm faces? Why?

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What can you say about the elasticity of the demand curve that faces the product (or service) produced by healthcare organization?

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Despite a wide variety of empirical methods and data sources, the demand for health care is consistently found to be price inelastic. Although the range of price elasticity estimates is relatively wide, ittends to center on -0.17, meaning that a 1 percent increase in theprice of health care will lead to a 0.17 percent reduction in healthcare expenditures. The price-induced changes in demand for healthcare can in large part be attributed ...

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