If the quantity demanded of medical care is higher at a zero price than at some positive price,then it follows that the demand for those specific items that make up health care will be higher (than it would be if the quantity demanded of health care were lower).

Question

Quizplus · Accepted Answer

If the quantity demanded of medical care is higher at a zero price, it means that the demand for health care is highly elastic. Therefore, consumers would demand more of those specific items that make up healthcare than they would if the price were higher. This is because a change in the price of healthcare will have a greater impact on the demand for healthcare as a whole, and hence the demand for the individual components of healthcare.

If the Quantity Demanded of Medical Care Is Higher at a Zero