question archive Demand for a medical service is price inelastic
Subject:EconomicsPrice:2.88 Bought3
Demand for a medical service is price inelastic. Medical services are different from most other goods and services in that the person who determines the demand (the patient) is not the person who makes the payment (payment is made by the insurance company). How does this affect the price elasticity of demand for medical services (increase it or decrease it)? You may assume this question refers to people who have health insurance. Give an explanation.
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