Economic Terms

Running Head : Economic Terms and the Healthcare Industry

Health Economics

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Health Economics

Part 1 . Definition of Selected Economic Terms

1 .1 Economics

- It is the study of how people choose to use their scarce resources in to satisfy their nearly unlimited economic wants (O 'Connor Faille 2000

1 .2 Demand and Supply

- Demand pertains to the schedule of various quantities of commodities which buyers are willing to purchase at a given price , time

and place Supply means the schedule of various quantities of commodities which producers are willing and able to produce and offer at a given price place and time

1 .3 Macroeconomics

- The economics of a nation , the behavior of whole economy and the output of goods and services

1 .4 Microeconomics

- is a branch of economics that studies how individuals , households and firms and some states make decisions to allocate limited resources typically in markets where goods or services are being bought and sold

1 .6 Inelasticity

- An inelastic demand is one in which the change in quantity demanded due to a change in price is small

1 .5 Elasticity

- It is the ratio of the percentage increase in quantity to the percentage increase in what affects it . The price elasticity of demand refers to the ratio between a percentage changes in quantity demanded due to a corresponding percentage change in price (Bernardo 2004

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