Elastic demand would be considered optional

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Some economists argue that the price elasticity of demand can be used to determine whether a good or service is a luxury or a necessity. In medical case, a procedure with inelastic demand would be considered a medical necessity, while care with elastic demand would be considered optional (or elective). Is price elasticity of demand a good way to gauge which procedures are more medically necessary than others? Explain.

Reference no: EM13854547

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