The demand for hospital services is highly inelastic while the demand for physician's services is highly elastic.

Question

Quizplus · Accepted Answer

The demand for hospital services is generally considered inelastic because people will need hospital care regardless of price changes, especially in emergencies. However, the demand for physician's services can also be relatively inelastic, as people often prioritize health care when they need it, though it may vary more than hospital services due to the availability of alternatives and the nature of the health issue.

The Demand for Hospital Services Is Highly Inelastic While the Demand