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DO NOT COPY/PASTE from INTERNET Good question for someone who has a good grasp o

ID: 1116764 • Letter: D

Question

DO NOT COPY/PASTE from INTERNET
Good question for someone who has a good grasp of health economics/economics in general

please if English is not your 1st language, leave the question to another person who can write in proper English that is readable. thanks


Describe the concept of suppliers induced demand (SID). Describe 2 conditions or circumstances within the operation of a healthcare system under which SID is more likely to occur.

Describe the concept of supplier-induced demand (SID). Describe two conditions or circumstances within the operation of a health care system under which SID is more likely to occur.

Explanation / Answer

Supplier induced demand occurs when suppliers force patients who demand service of health care professions to consume more than what than what is optimal for them.

SiD is more likely to occur when

a As it is as symmetric information problem this is more likely to occur when patients are illiterate and have less knowledge about medical sciences

B. When there is lax legislation. e.g in many countries patients are prescribed branded drugs while as generic drugs are ten times less costly. This occurs because govt does not enforce rules banning prescription of branded drugs