Need a custom Essay sample written from scratch by professional specifically for you? Main factors, other than price, which affect the market demand for a product are: —. Select a referencing style:. The price elasticity of the commodity is subject to the changes in demand as a ratio of the price. Related Essays A Study of Demand and supply essay in Relation to Supply and Demand of Health Insurance Essay.
Factors that can change supply and demand
Economics plays an important role in the healthcare industry in the US. The relationship between different organizations and individuals involved in the production and consumption of health goods and services in the US is a complex one. The economic need of an individual in terms of healthcare is main idea behind the consumption while organizations provide the above needed services. The healthcare industry is subject to all the economic trends through production of goods and services which in this case are the drugs, equipment and the services rendered by medical professionals.
Supply on the other hand denotes the presence centers that provide medical services and the ability for the manufacturers of these products avail the products to the consumers. Besides the forces of demand and supply, there are economic variables including time, accessibility of drugs and services and user charges as applied in the industry. The discussion will focus on the above principles of economics as they demand and supply essay to the healthcare industry in the US. Precisely, the discussion will focus on the supply and demand of endocrinology services in the US.
There will also be a discussion on the economic relationship between the availability of these services in the US and the economic variables involved especially cost and access, demand and supply essay. Endocrinologists help in the treatment of endocrine disorders associated with diabetes conditions. Besides cancer and heart disease, diabetes is ranked as the other major disease among the American population. The rise in the cases of diabetes, has led to a rise in demand of endocrinology services in the US. On the other hand however, the number of endocrinologists entering the market in the US has reduced considerably. The situation has therefore created a supply demand mismatch in the availability of these services. According to Stewartp.
According to him, the demand for endocrinology services is going to rise further considering the fact that over 44 million people in the US need their services. The above demand is against a supply of slightly above endocrinologists available in the US according to a survey. Over of these are not primary care providers, leaving an average of endocrinologists in active practice. The above scenario clearly shows demand outstripping supply. According to Mercerp. The above demand — supply mismatch has had its consequences felt by the consumers of these services in the US.
Basic economics dictate that the most likely effect when demand outstrips supply is the rise in price of goods and services. Mercerp. Stewart concurs in his analysis when he says that the shortage of endocrinologists negatively impacted access to care by patients with demand and supply essay, obesity, demand and supply essay, adrenal disease and thyroid cancer. This shortage of endocrinologist has led to limited access and care of endocrinology patients, demand and supply essay. There are verified reports of patients waiting up to 6 months to gain access to an endocrinologist.
As expected, the costs associated with accessing the services have risen. This is partly because of the negative consequences of the failure to treat the condition appropriately due to waiting time and largely because of the economical factor of less supply. Instead they have adopted the volume solution to resolve the problem. Additionally, the industry has adopted an approach of engaging primary care physicians to handle endocrinology patients. This primarily aims at availing wide access to the services to the people who need them. Rizza et alp, demand and supply essay. According to a supply model developed by the Rizza, the difference between the demand and supply of these services will reduce in the first decade of the 21 st century as new professionals enter the field.
However, expected retirement of many endocrinologists who will be above 50 years during the decade will widen the demand and supply mismatch. There is sufficient reason to believe that improved supply of endocrinologists to the market in the US will eliminate most of the problems brought by the shortage. There is need to prop up the supply of endocrinologists in the US through the implementation of measures influenced by the factors of supply. Secondly, there is need to raise the retirement age of medical practitioners demand and supply essay the raise should mainly target the endocrinology profession. That way the rate of attrition from the profession will be stemmed and effectively improving supply of the professionals.
The above factors are expected to boost supply of the professionals to the market to end the bridge the gap between their demand supply deficits. The above analysis represents the integration of the principles of economics especially demand and supply in the healthcare industry. Medical services in this case endocrinology are treated like any other commodity that I available in the market for the highest bidder. Like in pure economics, the economic variables of cost and access to good and services are affected by demand and supply. A rational analysis on the number of demand and supply essay in the field of endocrinology in the US and the demand that is currently available easily suggests a deficit in supply.
The mismatch between the forces of demand and supply therefore has led to the rise n the costs associated with endocrinology services. Additionally, access to the services has also been affected. Increasing the supply of this service will weigh down on demand and an equilibrium position will be achieved, demand and supply essay. The measures suggested in the last part of the discussion are meant to increase the supply demand and supply essay the supply chain which in this case is the training institutions. Mercer, A. Supply and Demand. Diabetes Health. Rizza, A. et al. Stewart, A. The United States Endocrinology Workforce: A Supply-Demand Mismatch. Need a custom Essay sample written from scratch by professional specifically for you?
certified writers online. Demand and Supply. We use cookies to give demand and supply essay the best experience possible. If you continue, we will assume that you agree to our Cookies Policy. Introduction Economics plays an important role in the healthcare industry in the US. Learn More. We will write a custom Essay on Demand and Supply specifically for you! Not sure if you can write a paper on Demand and Supply by yourself? This essay on Demand and Supply was written and submitted by your fellow student. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.
Removal Request. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Does Money Buy Happiness? Microeconomics: Supply and Demand Concept. GET WRITING HELP. Cite This paper, demand and supply essay. Select a referencing style:. Copy to Clipboard Copied! APA-6 MLA-8 Chicago N-B Chicago A-D Harvard. Reference IvyPanda. Work Cited "Demand and Supply. Bibliography IvyPanda. References IvyPanda. More related papers. Check the price of your paper. If you continue, we will assume that you agree to our Cookies Policy OK.
nursing ethics essay
They are the substitutes of the computer because one can use the product instead of opting to buy a computer. A PDA is a typical example of a computer substitute because it does the functions of the computer with minimal effort and space unlike the computer which occupies space and hence creates inconvenience to the user while travelling. A mobile phone also creates a typical substitute of a computer because of its ability to perform the task of a computer with an added advantage of its size. The two products are the typical examples of the computer substitutes available in the market. From the basics of microeconomics according to William , a complement of a product is the product that is needed for the primary product to work properly.
In essence, some of the most basic complements of a computer are the peripherals such as the printer, joysticks, scanners, the internet connection, and software systems. There are both hardware and software complements of the computer. Software developers are usually the primary developers of the complements of a computer system. The elasticity in microeconomics as explained by John is the relative change in the demand with respect to the changes in the pricing of the commodity in question. It is usually expressed in a ratio as follows a typical graph for this ratio is normally given as shown below;. With the increase in the necessity of the product which is a computer in this case and keeping the price constant with other external factors, in an ideal situation, it is expected that the price elasticity of the of the computer will be positive.
In the real world this might not be the case because of the assumptions made; the increase in the necessity will lead to increase in the number of competitors who are substitutes of the product. On the other hand, the increase in the necessity may cause an increase in the price which may result in a constant or not effect on the elasticity of the product. This paper has succinctly discussed the factors that influence the nature of the demands and the supply of a commodity which is taken to be a computer in this case. The demand of the computer is subject to its substitutes and to some extent its complements, it complements simply adds value to the computer while its substitutes reduces its demand in the market.
The price elasticity of the commodity is subject to the changes in demand as a ratio of the price. The necessity of the product is thus supposed to increase its price elasticity; however this is not always the case because of other influencing factors. John, B. Chicago, IL: Financial Times Prentice Hall. William, J. Microeconomics: Principles and Policy. New York, NY: Cengage Learning. Need a custom Essay sample written from scratch by professional specifically for you? certified writers online. Supply and Demand Paper. We use cookies to give you the best experience possible. If you continue, we will assume that you agree to our Cookies Policy.
Table of Contents. Introduction Factors that can change supply and demand Substitutes of the product Complements of the product How necessity impacts on the price elasticity of the product Conclusion References. Learn More. We will write a custom Essay on Supply and Demand Paper specifically for you! Any subject. Any type of essay. Demand is defined as quantitative reflection of orientation of the people, at a particular price, per unit of clock time. Demand for commodity is affected by several gene such as Price, income and price of related goods. The routine of relationship between the requirement for a commodity and the factors affecting it is called demand function.
Main factors, other than price, which affect the market demand for a product are: —. The requirement for a good depends upon its toll. People prefer to buy more at a lower price and less at a higher price. Price and measure demanded are inversely related and demand curved shape slope downwards from left to right. Income As the income of the consumer step-ups the quantity of demand will increase and as the income dusk the demand also reduction. Income and demand are positively correlated. Demand curvature gradient upward from left to right. Want, Tastes and Preferences Demand for trade good influenced by the factors like wants of the consumer, their sense of taste, orientation and fashion.
Wants and fashion changes the demand for some commodities gain while other lessening. Price of substitutes Demand for one commodity not only depends upon its monetary value but is also influenced by the Mary Leontyne Price of substitute goods price and demand are positively related. Prices of Complementary Goods Like automobile and petrol, the price and quantity requirement are inversely proportional. For example, if a price of car gains the need for petrol will decrease. Size of Population Larger the size of universe greater is the demand for trade good and vice versa.
With an increase in the population the demand for various good increases and vice versa. Climatic Conditions Climatic variations influence the demand for some good for example coolers and refrigerator etc. are demanded during summer and woolen demanded during winter. Changes in climatic conditions have an impact on demand for trade good and services Customs and Conventions Demand for some good is influenced by customs and custom for example demand for new article of clothing during festival time of year, demand for gold during summer etc Advertisement Demand for commodities will be influenced by Advertisement run and sales packaging strategies. Attractive advertisement mass will be induced to steal certain commodities.
Social Environment It influences Demand for certain commodities, for example, people bread and butter in posh localities create demand for a railway car. Elasticity of Demand The law of demand explains the direction in which the demand changes for a given change in price. Elasticity of demand is classified into 5 different types Perfectly elastic demand Perfectly inelastic demand Relatively elastic demand Relatively inelastic demand Unitary elastic demand Perfectly elastic demand — A small alteration in the Price leading to an infinite change in quantity demanded.
Perfectly inelastic demand — Irrespective of the modification within the value the demand stay unchanged. Relatively elastic demand — Proportionate modification in quantity demanded is greater than the proportionate change in toll. Relatively inelastic demand — Proportionate variety in quantity demanded is less than the proportionate change in price. Unitary elasticity of demand — Proportionate modification in quantity demanded equals to proportionate variety in price. Price elasticity of demand can be measured by the following methods: Proportionate or Arc Method Total Outlay or Expenditure Method. It is used when price and need data is available. Sometimes one may have information about the price and the spending incurred on a commodity rather than price and demand.
In such fount outlay method is used. Diagrammatic or Point Method. The arc method is used to measure elasticity of need between two spots in time of a need curvature. One should bear in idea that a particular full point of a need curve consists of a group of Leontyne Price and a group of quantity need ed. The elasticity of demand at any point of a demand curve can be measure by diagrammatic method. Elasticity of Supply The legal philosophy of supplying indicates the direction of modification —if the Price goes up, supply will gain.
But how much supply will advance in answer to an increase in price cannot be known from the practice of law of supply. To quantify such change, we require the concept of elasticity of supply that measures the extent of quantity supplied in response to a change in price. Elasticity of supply is classified into 5 different types: Elastic supply Inelastic supply Unit elasticity of supply Perfectly elastic supply Perfectly inelastic suppl Elastic supply Supply is said to be elastic when a given percentage alteration in price leads to a larger change in quantity supplying. Inelastic supply Supply is said to be inelastic when a given percentage alteration in Leontyne Price causes a smaller change in measure supplied.
Unit elasticity of supply If monetary value and quantity supplied change by the same magnitude, then we have a unit of measurement snap of supply. Perfectly elastic supply When there is an infinite supplying at a term and the supply becomes zero with a rebuff fall in price, then the supply of such a commodity is said to be perfectly rubber band.
No comments:
Post a Comment