Which of the Following Is Not a Reason Why the Demand

question 135

Multiple Choice

Which of the following is not a reason why the demand for health care in the U.S. is quite price-inelastic?

• A)People consider health care to be a luxury.
• B)There are only a few, or no, substitutes.
• C)Most consumers do not shop around, preferring a long-term relationship with their doctors.
• D)Most patients have insurance, effectively removing their budget constraint for health care.

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Definitions:

Corporate Strategy

A comprehensive plan detailing a business's objectives and the methods it will employ to achieve its goals.

Product Differentiation

A marketing process that showcases the differences between products. Distinctions can be physical, such as features, or intangible, like brand image.

Management Accounting System

A framework used by organizations to provide financial data and information to managers for decision-making purposes.

Product Differentiation Strategy

A marketing strategy that businesses use to distinguish their products from similar offerings in the market, through unique features, branding, or quality.