Assignment 1 - Product Prices supply and demand

Assignment 1 - Product Prices supply and demand - increased...

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2 x x Microeconomics Assignment 1 Product Prices as determined by the forces of supply and demand 10/01/2009 Product Prices as determined by the forces of supply and demand Healthcare reform is one of the most controversy topics discussed in the past few years. President Obama is committed to sign a bill that will expand health care coverage to the approximately 40 million Americans who are currently uninsured by lowering the cost of health care and making the system more efficient. How this “Universal” Healthcare will affect the demand and supply forces? According with Thomas J. DiLorenzo (author of the article), United States will face an explosion of both cost and demand – since healthcare is "free." Price controls, or laws that force prices down below market-clearing levels (where supply and demand are coordinated), artificially stimulate the amount demanded by consumers while reducing supply by making it unprofitable to supply as much as previously. The result of
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Unformatted text preview: increased demand and reduced supply is shortages. In my opinion, it is inevitable that the supply and demand forces will be affected. Introduce more 40 million Americans in the Healthcare system will make that the number of doctors and hospitals are not sufficient, so all the system will be affected. Healthcare is related to ethical and equity issues and, obviously, the current system is not working efficiently (the United States is the only industrialized nation that does not have a universal health care system) and is 2 the country that spends more as % of GDP, something should to be done. We will see in the near future, if it was a good decisionor not. WORKS CITED DiLorenzo, Thomas. Socialized Healthcare vs. the Laws of Economics, 18 Aug, 2009 < http://newhampshirefreepress.com/node/472>...
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Assignment 1 - Product Prices supply and demand - increased...

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