Economic Environment Of Business
11 Pages2268 Words138 Views
Added on 2020-01-23
Economic Environment Of Business
Added on 2020-01-23
ShareRelated Documents
STUDENT ID:STUDENT NAME:SUBJECT CODE:ASSIGNMENT TITLE: ECONOMICENVIRONMENT OF BUSINESS1
Table of contents:(i)Introduction..................................................................................................................................3(ii)Economic functioning of the market in terms of health care in terms of demand and supplyand market equilibrium conditions..................................................................................................4(iii) Explanation of demographic demand pattern of health care....................................................6( iv)Necessary causes and effects of shifts in demand and supply in this market...........................7(v) Own price, cross price and income elasticity of demand in terms of various demographicgroups receiving health care with diagrams....................................................................................8(vi)Market failures with respect to health care..............................................................................11(vii) Possible options for government roles to ameliorate such failures.......................................12(viii)Manner by which government intervention affects the supply of health care, and costs andbenefits and restraints of these options .........................................................................................13(ix)Recommendations to the government......................................................................................14(x)Conclusion................................................................................................................................15Reference list:................................................................................................................................162
(i)IntroductionEconomic environment of business is an atmosphere where the economic variables and policiesof business operates in terms of economic infrastructure operates succinctly in terms ofdifferentiated business operations and the mechanisms related with the same in terms ofeconomic scenario which helps in creating conditions conducive to business such as that ofhealth care. The adjustments in economic cum financial environment helped manipulating thebusiness situations in varieties of market systems and helps increasing prominent businessopportunities which help the business to reach the steady state equilibrium processes related withbusiness and its surroundings Through the various business operations taking place via shifts inpolicies or strategies of prices and quantities the demand and supply of goods and services in anindustry based business is maintained and regulated with care. This equilibrium attainment andregulation of price -quantity framework of the business is done via changes in the elasticity’s orsensitivities of demand in terms of price and income variables respectively.(ii)Economic functioning of the market in terms of health care in terms ofdemand and supply and market equilibrium conditions A market functions always as per the Say’s law of market that is via the principle or modusoperandi of “supply creates its own demand” principle. This principle states that the amount ofgoods or services supplied in the healthcare market just determines the amount of demandsensitivity or demand intensity related with the intensity of supplies of these health care basedmarkets. Generally the health care markets are such markets where commodities are in forms ofvarious health services or tools of health based aids or equipments and medicines provided to thepatients in desperate need of the same. In terms of Law of demand these services are transactedbetween the service providers and the clients in terms of the basic rules of price mechanismadjustment and quantity adjustment process which finally brings about the equilibriumconditions in the health market which works via the pricing strategies affecting the demand andsupply framework in the healthcare market of business and other ancillary processes. Since thedemand curve of health services is a negatively sloping line featuring inverse relationshipbetween price and quantity of health based services and so it intersects the upward slopingsupply curve of health services depicting positive relationship between health services and pricesto bring about an equilibrium condition where the business economy functions at the agreed3
equilibrium price and equilibrium quantity by transaction of health based commodities inbetween the two entities with stability (Belás et al. 2015, p.95). (iii) Explanation of demographic demand pattern of health care Demographic patterns of distributions of demand in terms of use of health care services showthat the older peoples are in much need of health care than the younger ones since the latter havegreater restraining power or immunity against diseases than the older people of the sameeconomy. Therefore the demand intensities of older persons are higher than the younger onesand so the variety of demographic demand needed by the older persons also vary as they formthe major portion of shares of the health care based customer or client market (Boons et al. 2013,p.7). ( iv)Necessary causes and effects of shifts in demand and supply in this marketNecessary causes for shifts in demand and supply of health care services catered through thehealthcare market are increasing patterns and varied patterns of healthcare gods demanded bythe people with the advancement of economy due to globalisation where risks involved ismaximum in lieu of the challenges associated with each and every business of health and socialcare for which the prices shifts bringing about a change in terms of shifts of demand and supplycurves of health care based services of business based on modification in consumer tastes andpatterns of demand of health based goods and services (Bryman and Bell, 2015, p.15). The effects of these shifts in the demand and supply curves are reflected in the change ininvestment decisions and innovation based production strategies of the market of health care.4
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Study on Principles of Economiclg...
|10
|1719
|63
Analyses the Theory of supply and demandlg...
|6
|1079
|18
Managerial Economicslg...
|27
|4358
|268
Business Economics Assignment Reportlg...
|10
|1616
|20
Elasticity of Demand and Supply and Incidence of Taxationlg...
|9
|1202
|162
Economics: Opportunity Costs, Demand and Supply Analysis, Inelastic Demand, Price Control Effects, Average Cost and Marginal Curveslg...
|8
|1063
|386