Health care has a particularly low income elasticity.

Name: Health care has a particularly low income elasticity.
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Question

Quizplus · Accepted Answer

Low income elasticity means that as income increases, the demand for health care does not increase at the same rate. This is due to the fact that health care is often considered a necessity and people will seek out medical treatment regardless of their income level. Therefore, changes in income do not significantly impact the demand for health care.

Health Care Has a Particularly Low Income Elasticity