The demand for health care is unlike the demand for most consumer products and services . Its because while the desire for consumer products and services comes from direct consumption. Desire for health care is not derived directly from the consumption of the medical procedures themselves and here it comes from the direct value of improved health that is produced by health care. Demand for an MP3 player is based on the enjoyment that an MP3 player brings to a consumer, but few would choose to get a laparoscopic cholecystectomy for the same reason which is considered as an example.. A consumer’s desire to have her gallbladder removed is directly related to the positive impact the operation is likely to have on her health.
Understanding how health is produced, demanded, and valued is a useful starting point for evaluating the health care system and health care policy. For more