Research an article related to a concept in Elasticity measure the association between the quantity demanded and related factors.. The article should be related to the health care sector. Write a summary of the article.
Key concepts:
Chapter 8
Elasticities measure the association between the quantity demanded and related factors.
Elasticities are ratios of percentage changes, so they are scale-free.
Income, price, and cross-price elasticities are used most often.
Income elasticities are usually positive but small.
Price elasticities are usually negative. Cross-price elasticities may be positive or negative. §Managers can use elasticities to forecast sales and revenues.
Chapter 9
Making and interpreting forecasts are important jobs for managers.
Forecasts are planning tools, not rigid goals.
Sales and revenue forecasts are applications of demand theory.
Changes in demand conditions usually change forecasts.
Good forecasts should be easy to understand, easy to modify, accurate, transparent, and precise.
Forecasts combine history and judgment.
Assessing external factors is vital to forecasting.
