Chapter 4

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Author:
Mingming
ID:
279494
Filename:
Chapter 4
Updated:
2014-07-23 15:37:23
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Health Economics
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Health Economics
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  1. Its basic idea is that health is considered as a capitalized good
    Grossman model of intertemporal consumption of choice
  2. It refers to the quantity of goods and services that consumers are willing to buy/ purchase at a given price, place and at a given period of time
    Demand
  3. Factors of demand
    • Price factor
    • Non-price factor
  4. They are those that actually determine the quantity of demand or the factors that influence how much of certain goods and services people are willing and able to buy
    Determinants of demand
  5. It is the most obvious factor that people consider in buying a certain good or service
    Price factor
  6. Non Price Factors
    • Consumers' Income
    • Changes in consumers' taste and preferences
    • The size of population
    • Price of related goods and services
    • Consumers' expectation of future prices
  7. It is perhaps the most important non price factor underlying demand
    Consumers' Income
  8. These are goods or services for which quantity demand at every price increases when the income increases
    Normal Goods/Services
  9. These are goods/ services for which quantity demand falls when income rises
    Inferior goods/services
  10. They are among the major non price factors determining the quantity of any good demanded
    Change in consumers' taste and preferences
  11. An increase in preference and taste will incre the demand for the particular good
    Change in consumers' taste and preferences
  12. An increase in population means more demand for goods and services
    The size of population
  13. The quantity demanded for any good or service is affected by changes in prices of related goods and services
    Prices of related goods and services
  14. These are goods or services that can be used in place of other goods/services. (Increase of price in one is increase of demand in the other)
    Substitute goods/services
  15. These are goods that go or are consumed generally together (Increase of price in one is decrease of demand in the other)
    Complementary goods
  16. It is the relationship between the quantity of a good or service demanded and the price of that good or service
    Demand schedule
  17. shows graphically the relationship between the quantity of a good or service demanded and its corresponding price
    Demand curve
  18. Price- high; demand- low
    Price- low; demand- high
    the law of downward slopping demand
  19. Mathematical expression of the relationship between price and demand
    Demand function
  20. P- increases, Qd- decreases;
    P- decreases, Qd- increases
    ..if other factors remain constant
    Law of Demand
  21. "other determinants remain constant"
    Ceteris Paribus
  22. Elements of demand
    • Willingness to buy
    • Capacity to buy
  23. When the price of goods or services decreases, the consumer can afford to buy more of it or vice versa
    Income effect
  24. Effects of law of demand
    • income effect
    • substitution effect
  25. Movement of points along a demand curve because of price
    Change in Quantity demanded
  26. Shifting from one demand curve to another cause by all determinants except price
    Change in Demand
  27. amount or quantity of goods and services producers are willing and able to supply at a given price, at a given period of time
    Supply
  28. Determinants of supply
    • Price factor
    • Non-Price factor
  29. Price of input- increases, Quantity supply- decreases;
    Price of input- decreses, Quantity supply- increases
    Cos of input used
  30. represents the knowledge of how inputs can be combined to produce outputs
    Technology
  31. Financial aids given by the government
    Subsidies
  32. it is the relationship between the quantity of a good or service supplied and its price
    Supply schedule
  33. graphical relationship between the quantity of a good or service supplied and its price
    Supply curve
  34. mathematical equation of the relationship between the quantity of a good or service supplied and its price
    Supply Function
  35. Price increses, supply increases;
    Price decreases, supply decreases
    Law of supply

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