What Has Happened to the Elasticity of Demand for Health

question 30

Multiple Choice

What has happened to the elasticity of demand for health care over time?

• A) It has become more elastic.
• B) It has become more inelastic as people live longer and advances in medical technology are made.
• C) It has become more elastic as people face a shortened life span and advances in medical technology are made.
• D) It has become more inelastic as people face a shortened life span and advances in medical technology are made.
• E) The magnitude of elasticity has been constant over time.

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Definitions:

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares.

Cash Dividend

A payout of cash from a company's profits to its stockholders.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Retained Earnings Statement

A financial statement that summarizes the changes in retained earnings for a specific period.