Question

For Medical care and hospitalizations is short-run demand elastic or inelastic and is long-run demand elastic or inelastic? Please describe why for both so that I better understand. Thank you

Answer 1

Normally for medical care and hospitalization, for short run it is inelastic. Because we have high need for hospitals in critical and urgent situations. So we don't usually care about the price. Then a small price change will not have a large impact on the demand. For example if a person had a sudden stroke then he will be taken to the best hospital for the treatment. At that time relatives will not care about the money.

And in long run medical care is elastic. Because you have more time to decide and to think about different alternatives. So will choose the cost efficient and better trade-off. For example if you need to go for a massage therapy in the next summer, you will plan accordingly. Then a small price change in the hospitals have a great impact on your decision.

Hope it's clear. Please rate my answer.