Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-The demand for health care is perfectly elastic.

Question

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. 
-The demand for health care is perfectly elastic.​

Quizplus · Accepted Answer

The demand for health care is not perfectly elastic because consumers do not respond to changes in price with an infinite change in the quantity demanded. Instead, the demand for health care is somewhat inelastic due to its nature as a necessary service, where consumption does not significantly decrease with price increases.

​Figure 53

Figure 53