Healthcare_Market_Paper

Healthcare Market Paper University of Phoenix ECO/HC561 It is certain and clear that by knowing that resources and products are scarce themselves come from resources a fundamental problem arises, this is, economic problem. The economizing problem states that the material needs and wants of society are unlimited in comparison to resources that are limited or scarce. The fundamental questions arise of what, who, and how will goods be produced and received; as to where the resources can be allocated between the producers, which producers will mix the inputs and finally how those outputs will be distributed among people. Economic wants are simply described as the desires people have to use products or services that eventually end in satisfaction. Economists create models out of the combinations of theories that they develop in order to represent them. For example, the production possibilities model is a macroeconomic model that shows how much tradeoffs and outputs can be produced with a limited amount of inputs (Experimental Economics Center, 2006); it assumes that two types of products can be obtained consumer goods, the ones that satisfy our needs directly and capital goods, the ones that satisfy our needs indirectly by facilitating the production of consumer goods. The production possibilities model presents a production possibilities table where data on the possibilities of output alternatives can be achieved with the current inputs; that data is presented in the production possibilities curve. As a final statement, the production possibilities model presents that in a fully employed economy one good must be sacrificed in order to obtain another good; both goods cannot be produced at the same time due to the scarcity of resources, sacrifices must be made by choosing alternatives or possibilities. Supply and demand is one of the most fundamental concepts of economics Supply and demand threshold of a market economy. Demand is looked upon as how much, the quantity of a product or service which is highly preferred by buyers. Quantity demanded is often referred to as the amount of a product people are willing to buy at a certain price. This relationship between price and quantity demand is known as the demand relationship. Supply represents how much a certain the person or company is will to give or offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. This correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price is the reflection of supply and demand.