Price Elasticity of Demand

The Concept of Price Elasticity of demand in Healthcare Elasticity Elasticity means to the amount of receptiveness shown in supply side or demand side relative to variations in price. If a curvature is much more elastic, then minute amends in price will make big variations in quantity used. If a curvature is not as much of elastic, then it will make big amends in price to cause a variation in amount used. It can be illustrated by the form of the supply side or demand side curve.Advertising We will write a custom essay sample on Price Elasticity of Demand specifically for you for only $16.05 $11/page Learn More Price elasticity of demand It submits to the extent of receptiveness in demand side quantity in relation to price. In the example given below demand side is very elastic. It can be seen that if the price varies from US$ 0.75 to US$ 1, the quantity amount lowers. Explanation behind this can be that the purchasers might have access to an alternate medicine, so that as the increment in price occurs, he does not accept it. Other explanation could be that the purchaser didn’t find the medicine good enough, so any little variation in price has a big impact on the medicine’s demand. Source: Quantity q Elastic DemandAdvertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Healthcare – A general view with reference to price demand elasticity The healthcare sector constantly experiences price elasticity on its demand side regardless of different methodologies and researches. Even though the array of price elasticity approximations is comparatively broad, it inclines to middle on minus 0.17, implying that one per cent raise in the amount of price within healthcare sector will direct to a 0.17 percent decrease in expenditures. The variation caused by the price factor in the demand side can be associated to variations in the prosp ect of reaching any care rather than the variations in the frequency of stopovers. Additionally, the research constantly discovers lesser amount of demand elasticity at lesser stages of sharing cost. The health side demand is also believed to be inelastic in respect to income. The approximations of elasticity on the income level are in-between 0 and 0.2. The optimistic signal of the elasticity standard suggests that as income level rises, the demand side will also experience a rise. The scale, though, proposes that the demand side reaction is moderately little. Healthcare demand is considered by many specialists to be inelastic. If a person is ill, he is not going to show sensitivities in price. However some do fall away from the domain or e.g. surgery such as any form of plastic surgery or when you are buying eyesight glasses. Price elasticity was -0.2 in a study conducted by RAND Health Insurance for medicine expense . Is the demand Elastic-Healthcare Another research suggested th at the healthcare associations with prices are elastic. Its outcome suggests that the elasticity of healthcare and price are at -2.3 diagonally 0.65 to 0.95 tier of the allocation of expenditure, with a spot-wise 95precent assurance space at the 0.80 tier of -02.5 to -02.0. Even though the research permits to project the change with the degree of expenditure, it concluded that the projections were quite steady over the projected tier. As the quantity side is associated with the price side, it requires unsystematic surprise to quantity side in respect to recognize elasticity.Advertising We will write a custom essay sample on Price Elasticity of Demand specifically for you for only $16.05 $11/page Learn More When a family member has an injury, it would not influence the healthcare spending of others within the family i.e. if they are not facing injuries themselves. Though, the damage will utilize up a big section of a family’s amount and hence brin g down the insurance of the whole family rates from hundred percent to twenty percent . Few illustrations Price division is the expression used to explain diverse shapes of straight charging for medical treatments. In the United Kingdom, a lot of citizens have to give treatment charges that they are liable to pay whenever they require treatment or are given prescriptions. This treatment charges have their own effects. In projection, it is shown that the treatment’s demand is somewhat inelastic to price, having a negative 0.32 mean value. This implies that the treatment expenses charged are a good method to get funds, but they do not have an impact of any significance over demand. It was established in the research that increment in the treatment money charged from the 90’s i.e. 3.75 pounds to 4.25 pounds accumulated into a hefty amount which is thought to be in excess of 17 million pounds in additional returns but what they did was, it guided to a drop of 23 hundred th ousand in the figure of treatments and prescriptions given. This study also recommends that with the passage of time, treatments and remedies disbursed will become more and more elastic to price. The Hughes and McGuire research concluded that the increment in treatment services in healthcare are going to lift lesser proceeds but in turn direct to larger decrease in usage of approved medications compared to what it did during the past . During the year 2005, Ireland was graded the least of the European Union in relation to the medicine cost per occupant. The major causes for such a boost in Ireland included the prescription of fresher more pricey drugs, the amplified quantity of treatments as well as the alterations which took place in the qualifying standard. During the year 1997, the standard charge per disbursed medicine was around 11 pounds to 11.50 pounds in contrast with twenty three to twenty four pound in the year 2007. As the overall populace demographic patterns are alterin g, the prescription rates are also altering. Since the number of older people in Ireland has been increasing, the demand for treatment has been increasing too.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It can be established that the demand in healthcare within Ireland is correlated as the prices of medicines are elastic to number of patients being treated. Similarly, the prices of medicine are also found to be elastic to the number of medicines disbursed. From the year 2000, Ireland has faced an upward trend in prescriptions of defensive/preventive drugs or treatment, a good example for which is the Statins . In a study carried out in the state of Massachusetts a subsidy was endorsed, for a chance to calculate the healthcare demand for the price elasticity function. The MEPS from the year required 2005 to the year 2007 demonstrated the figures that the people put out or consume over healthcare outflow, a substitute for the amount needed i.e. the demand and their average healthcare funding consumption, a substitute for the pricing. The graphs presented below, depict the points showing the descending inclination of the demand curvature. The elasticity for demand for the years 2005 a nd 2006, and the years 2006 and 2007 price is -1.95 and -0.18 respectively. Both are found to be inelastic, which means a sharper curvature for demand, which signifies a bigger advantage from the healthcare sector financial support. Source: Number in Massachusetts with a Healthcare Expense Source: Summary Works Cited Barry, Michael, et al. â€Å"Projecting the Impact of Demographic Change on the Demand for and Delivery of Healthcare in Ireland.† 2009. HRB. 15 October 2011 http://www.hrb.ie/uploads/tx_hrbpublications/Final_Report.ESRI.pdf. â€Å"Elasticity.† 2011. Spark Notes. 14 October 2011 http://www.sparknotes.com/economics/micro/elasticity/section1.html. â€Å"Is healthcare demand elastic?† 2009. Healthcare Economist. 15 October 2011 http://healthcare-economist.com/2009/07/22/is-health-care-demand-elastic/. Liu, Su and Deborah Chollet. â€Å"Price and Income Elasticity of Demand for Health Insurance and Healthcare Services: Acritical Review of the Litera ture.† 2006. Mathematica. 14 October 2011 http://www.mathematica-mpr.com/publications/pdfs/priceincome.pdf. Maguire, Jon. â€Å"Hotspots for Healthcare Savings.† 2011. MyDataMine. 15 October 2011 http://mydatamine.blogspot.com/. â€Å"Price elasticity of demand (PED).† n.d. OheSchools. 15 October 2011 http://www.oheschools.org/ohech2pg7a.html. Ringel, Jeanne S, et al. â€Å"The Elasticity of Demand for Healthcare.† 2005. Rand. 15 October 2011 http://www.rand.org/pubs/monograph_reports/2005/MR1355.pdf. This essay on Price Elasticity of Demand was written and submitted by user Muhammad S. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

System Analysis and Design Proposal Essay Example

System Analysis and Design Proposal Essay Example System Analysis and Design Proposal Essay System Analysis and Design Proposal Essay The University of Southern Mindanao, Cabana, North Catboat is one of the leading institution that conducts regular faculty performance evaluation. This activity is done every semester wherein each student has to rate his teacher per subject, head of the academic office has to rate his subordinates, and faculty itself has to rate his own and his co-faculty. Teachers are one of the backbones of an institution. Their effort, skills and perseverance aid on molding the students to become successful in their desired field. Some people will conclude that if a student will excel in his field, ill graduate with flying colors and will successfully pass the nationwide or international exam, one factor that influences it is the teacher. Thus, some said that it is still depend on the students ability and determination. Teachers performances are sometimes criticized not only by the co-teachers, but by the students as well, because they are the direct contact of the teachers. However, those Judgments cannot be considered true without proper basis. Thus, every academic institution nowadays conducted the faculty performance evaluation to assess the effectiveness of the teaching personnel. A manual teacher evaluation system is difficult and hard to automatically furnish accurate reports and results. The process takes a lot of time and it takes many days or months to compute for the result. The HARM officer and its staff which are the prime movers of this activity made a significant improvement in handling this type of problems. In this case, it will eliminate some of the most delay operation and difficult task, minimizing them in to smaller and manageable problems to solve. The HARM has greatly improved work efficiency, accuracy and management of operations. Teacher evaluation system defines a system to support high and technological automated evaluation system. It provides feedbacks and a support system that will encourage teachers to improve their knowledge and instructional skills in order to improve student learning. SCOPE The said entity is not as ambitious as it is. It will mainly focus on the teachers personal information, students objective feedback about the teachers performance and effectiveness and assessment. This activity is done every semester wherein each student has to rate their teacher itself has to rate his own and his co-faculty. The said activity also involves the following processes: manipulation of the gathered data, interpretation, evaluation and dissemination of the result to the faculties and instructors. ANALYSIS OF THE CURRENT SYSTEM The manual process takes a lot of time and it takes many days or months to compute for the result. The student rater in this activity will be given sheets of paper and by the use of pen, selects one numerical scale that would serve as the grade of the rate per question. The HARM personnel will wait for the submission of all students in a retain classroom and will proceed to the next available students in a room. The scenario will be repeated to comply with the desired number of students raters. As to the head of academic office, he has to give to his subordinates the performance evaluation sheets for peer and for self. The said process shows how sluggish it was. The process is also prone to errors due to hectic schedules of the heads and faculty; they may neglect the forms that will cause the delay and misplaced or lost data that will lead to incorrect manipulation and miscommunication. PROBLEM CAUSE EFFECT ANALYSIS Problems Cause and Effect Time consumed on processing the evaluation The manual process on using a sheets of paper and by the use of pen cause a delay. Prone to errors Due to many numbers of evaluation sheets the tendency is miscommunication. Misplaced forms Due to sluggish process the tendency is some evaluation forms may be lost and misplaced. Delayed computation Due to hectic schedules of heads and faculty the result of computation may delay. System Objects System Constraint Lessen the time consumed on evaluation process The student will no longer using paper and pen, instead they will directly evaluate on the given automated evaluation system. Eradicate errors A user-friendly evaluation system will be implemented for the ease of students, heads, faculties and comfort ability of the system. File security Only the head of academic can access the files with a given surname and password. Generate comprehensive reports Reports are automatically generated from the system. Background Information Automated evaluation system is one big factor that helps not only students but also the HARM, teachers, and co-teachers to ease their waiting and sluggish period in arms of evaluation. Evaluation process with the use of pens and papers only is not an easy task for the HARM to handle. The scenario will be repeated as it goes. Manual evaluation system is a laborious task. It requires more time for processing and the mere fact that it is slow, affecting work efficiency; another thing would be its accuracy in processing while in the automated system, the officer in-charge will be the one to access the files using surnames and passwords. This process of manual results and reports. The researchers come up to an automated evaluation system. USER EXPECTATIONS OBJECTIVES This document aims to present a clearer description of the requirements and desires of the evaluation system. It shows the features, functionalities and flows and how the system will work. The proposed system will try to eliminate the delay operation and inconvenience of the old manual operation. It will try to lessen the time consumed in evaluation process wherein the HARM officers in charge will no longer wait for a long time for the submission of faculties and students evaluation forms before proceeding to the next room or office. In this proposed system, the target user will directly input his/her taints in a ready to use and simple interfaced forms of the proposed system and with this, they will no longer use pens and papers to evaluate their teachers and as well as the teachers to their own and co-teachers. The system also assures that only the in charged HARM officer has the access and authority to view all the datas gathered to keep its confidentiality and secrecy through a given surname and password. Techniques Used to Solve the Problem The techniques that we used in order for us to solve the problems are the following: Analyze the system operations of the given problem for us to understand he cause and effect of the problem, and the possible solutions.

Economics Essay Example | Topics and Well Written Essays - 1250 words - 2

Economics - Essay Example Because of rationality in making economic decisions people often consider the cost and the benefit of their decision. In most cases, people will make an economic decision anticipating a gain (Hirschey, 2009). When purchasing a house I will expect a gain of value, my decision will therefore be based on the difference between the cost incurred to obtain the house and its value. This essay will give a discussion on the economic implication on my decision to purchase a house. Several principals among the ten economics principals will directly influence my decision towards buying the house. Firstly, people face tradeoffs. This is the first principal that I will encounter in the process of making the purchase decision (Slembeck, 2007). This principal implies that one has to give up something in order to acquire something else. According to this principal, I will need to give up my money in exchange to the house. I will also need to give up the purchase of other items that I need most such as a new car in order to acquire the house. Lastly, after acquiring the new house I will have to give up living in my old house in order to occupy the new house. Rational people think at the margin, this is the second economic principal that I will encounter when analyzing my decision to purchase the house (Slembeck, 2007). This principal implies that a rational decision is based on the difference between marginal benefits and cost. ... When buying the house I need to evaluate how the cost of the house compares to the cost of missed opportunities. Finally, people respond to incentives, this principal will be major influence when making the decision (Slembeck, 2007). This means that my decision will tend to follow incentives offered by the different sellers in the market. According to the principal, I will consider purchasing the house from the seller who offers the best discount. Marginal benefits are the additional utility or satisfaction that a person derives from the consumption of an additional unit of a particular commodity. On the other hand, the marginal cost refers to the opportunity cost of acquiring an additional unit of a particular commodity. In the cases of purchasing the house, marginal benefits will refer to the satisfaction derived from a second and subsequent consumption of a commodity (Hirshleifer, Glazer, & Hirshleifer, 2005). The marginal benefit of a house diminishes steadily after acquiring the first unit this is because a person cannot live in two houses simultaneously. This implies that people will tend to spend their money to acquire other items after acquiring their first house. Similarly first time homebuyers will consider their first house as an additional unit. In this case, the house will have a higher marginal benefit that compares well with the missed opportunities. The marginal cost of an item refers to the opportunity cost incurred from acquiring an extra unit of a particular commodity. The opportunity cost of a house is therefore the cost of missed opportunities resulting from acquisition of a second and subsequent house. The marginal cost of a house increases steadily after acquiring the first house since a person can only live in one