Question

Discuss what is meant by the statement, "income elasticity of demand for private health insurance is positive"?

Answer 1

Answer : The statement means that income elasticity is positive for private health insurance. As we know when income of the consumer increase than the demand for normal good has been increased drastically which shows that as income increase consumer demand for health insurance has been increased drastically .As increase in income results in the demand of the private health insurance. As when our income increase , we want to increase our standard of living and person purchase on its own better health facility available with them when they are sick.