Over the past 20 years both the quantity of health care provided and health care prices have been rising rapidly. Economic theory would suggest that the observed data could best be explained as

Question

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According to the law of supply and demand, if the supply of a good or service remains relatively constant while demand increases, then the price of that good or service will increase. Therefore, the rapid rise in health care prices over the past 20 years suggests that there has been an increase in demand, while supply has remained relatively constant. This could be due to factors such as an aging population requiring more medical care, the increasing prevalence of chronic diseases, and advancements in medical technology leading to more expensive treatments.

Over the Past 20 Years Both the Quantity of Health