Demand versus Supply

Demand versus Supply

Introduction

Demand and supply is conceivably one of the most fundamental and important concepts in the economics scope and it are considered as the back bone of the economic market. In simple words, demand normally referred to the quantity in terms of how much quantity of a product or service desired by the consumer/buyer. The demand quantity generally denoted by the amount of the product or the service that the consumer/buyer happily willing to buy on a certain set price by the producer. Therefore, the relationship between the quantity demanded and the price known as the demand relationship.

On the other hand, supply is represented by the quantity of a product or a service offered by the market. The quantity supplied denoted to the amount of a certain good or a service producers willing to supply the product/service when receiving a certain fix price. Therefore, the correlation between the amount of the product/service supplied to market and price is normally termed as the supply relationship. However, the Price factor is the reflection of the supply and demand.

Discussion

The purpose of writing this paper is to give readers an idea regarding the concept of demand and supply in the healthcare sector. In the United States, health care sector is a crucial sector where the demand supply concept implemented to its best because of the huge demand and also due to the considerable supply. Therefore, in this paper, the researcher tried to provide the evidence to the readers to understand the concept of demand versus supply in the health service.

Accounting for Health Care in US

According to the McKinsey Global Institute (2012), United States spent around $ 2.1 trillion each year on the health care, and almost $650 billion considered to be rising each year and the relative effect of the increase is adjusted with adding the other taxes to keep the balance in US economy. One of the area, where the spending seems considerably increasing in the coming years is the drugs and health care administration. Only the health care administration cost represented around $91 billion increase, counting almost 14% of the total spending on the health sector. The major portion of the health care administration comprises of the nurses, therefore, the focus is on the demand supply of the health care nurses.

Health Care Work Force

In the United States, nurses and physicians shortages making the headlines of the news on the regular basis. There are considerable amount of debates among the various researchers, stakeholders and the analysts on figuring out the real cause of this shortage. Some people think that this shortage is because of the insufficient numbers of the providers, whereas on the other hand, some people believed that it is all because of the misdistribution of those providers. The health care experts believed that the possible solution for the demand supply problem is to build more institutes and also enlarge the capacity of the classis of the physicians, similarly, expand the residential slots for the medical students, ...