HCA 6013 Dynamics of Healthcare Markets
Module Two
The Traditional Competitive Model
1) Briefly describe how consumers achieve utility.
2) Describe what is meant by the term equilibrium and why the equilibrium outcome is desirable.
3) Describe what a demand curve is and provide example of one you personally experience when purchasing combo goods. Does that hold for purchasing your healthcare? Why or why not?
4) Explain the concepts of elasticity and price elasticity of demand.
5) How do producers seek to maximize profits?
6) Describe the notions of marginal cost and marginal revenue.
7) Describe the production process and the variables affecting the production process.
8) Describe ways short run and long run production differs.
9) Explain what is meant by competitive market equilibrium.
10) Describe the concepts of shortages and surpluses.
11) Outline the effects of changes in supply and demand on equilibrium. (use a table if you wish)
12) The Primary Care Enhancement Act or 2025 allows individuals to use their Health Savings Accounts (HSAs) to pay for Direct Primary Care. DPC charges a patients a monthly membership fee for an agreed upon amount of care (usually excludes labs). To meet service promises, DPC panels are smaller than standard primary care. The legislation was intended to lower healthcare costs.
Using the constructs in the chapter, what
in your opinion do you think will happen to consumer demand, supply and price of primary care? Will it decrease or increase?
BOLD THE CONSTRUCTS USED IN YOUR ANSWER. You do not need to use all constructs from the list.
