The Baby Boomer generation is aging and will need more health care support (demand) over the next few years. Tens of thousands of nurses and primary care physicians (PCP) will be needed (supply) to meet this demand. Reduction in Medicare payments -- leaving PCPs scrambling to keep their practices; lack of interest in becoming a PCP; and a general shortage in qualified nurses complicate the supply chain for this increasing demand.
How do we meet this growing demand?
Demand includes both willingness and ability of the consumer to buy the goods at a specified price. The Law of Demand is that price and demand are inversely related. This means that an increase in price results in decline of demand and a reduction in price results in an increase in the quantity demanded. However, demand may not decline with the increase in price in case of luxury goods and necessities. Demand of goods is also affected by factors other than price which include:
- Price of related goods
- Income ...
Solution provides Supply and Demand