Elasticity of Demand in Healthcare Economics
Respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.
One of the basic principles of economics is supply and demand. It is integral in how we consider the appropriate price for our product and how the change in price might influence the demand. We know intuitively that an increase in price will reduce demand, but by how much?
Keeping this in mind, please answer the following:
- Explain the concept of elasticity of demand. Discuss how the competitive environment influences elasticity of demand. Examples include the following
- Monopoly
- Oligopoly
- Monopolistic competition
- Perfect competition
- How would you, as a manager or leader, factor elasticity of demand into the decision-making process of raising prices with profit maximization in mind? Discuss an example.
- Monopolistic competition
Lewin states that a cognitive action complex is formed when tasks are skillfully reorganized cognitively. This complex can be engaged with a “single impulse of will,” which unleashes the behavior sequence subconsciously automatically.
Whereas, the challenge facing criticism of his theory now, after a century of research that has yielded a plethora of fresh data contradicting some of its principles, is to show that the “hardcore” premise of action energization via association is tenable (Eder & Dignath, 2022). Hence, Lewin, a devoted experimentalist and a philosopher of science, would be pleased with these results. Once more, Lewin´s theory continues to be an early example of the contemporary action control viewpoint, which advocates carrying out a cognitively generated “action plan” with the least amount of conscious intervention.
Lastly, its validity and corroborated theory are the first reasons why it was decided to use this theory to potentialize and support this project. APA