Question

In considering the principles of supply, demand, and market structures, describe how health insurance affects both consumer and producer decisions.

Answer 1

Answer :

Principles of supply and demand : demand means higher quality buying or using by people, if persons are using high health insurance facilities means, there is a demand to health insurance facilities, so supply is there constantly the demand still more increases, if supply is increases demand decreases.

Market structures: it means number of goods and services producing in the market and increasing it's demand due to good quality.

Health insurance affects the both consumer and producer decision :

* mainly lower income and uninsured persons may show more interest to wards health care insurance than the high income and insured persons or consumers.

* the only thing due to lack of educational, and numerical skills in the consumers they will take less decisions towards health care insurance.

* so by providing good education and explaining benefits of health care insurance they also will show interest.

* if they decided to receive the health care insurance services these are benefits to over come problems during sick ness.

Producer decisions:

If the producer can plan adequately to provide supplies.

* if the producer will take good decision to provide quality of health care insurance services, the consumers also attract to wards that.

* so, the decisions of producer must be meet the needs of consumers.