10. Grossman’s demand model Individual/client factors [age, sex, education, occupation] Environmental factors (physical, economic, social, cultural) Health care resources factors E.g. supply, access, acceptability Prepayment factors E.g. private insurance, tax based health Insurance, national health system, Out of pocket payment Demand
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29. Elasticity Price # Visits A relatively flat demand curve implies that a small increase in price leads to a large fall in # visits demanded
30. Elasticity… Price # Visits In this case demand is considered to be relatively “elastic” with respect to a change in price
31. Elasticity… Price # Visits A relatively steep demand curve implies that a small increase in price leads to a small fall in # visits demanded
32. Elasticity… Price # Visits In this case demand is considered to be relatively “inelastic” relative to a change in price