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True or False. Price is irrelevant to the demand for many healthcare services.

User Chondrops
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Final answer:

The claim that price is irrelevant to the demand for healthcare services is false; while demand can be inelastic for some services, price still plays a role. The 'everyone has a price' statement is simplistic and does not account for factors beyond price. The statement on the goods market equilibrium is false as it ignores scenarios where consumers may willingly pay more due to factors like rarity or personal valuations.

Step-by-step explanation:

The statement that price is irrelevant to the demand for many healthcare services is false. Although some healthcare services are considered necessities and patients may appear less sensitive to price changes, it is incorrect to suggest that price does not affect demand at all. Healthcare demand can be inelastic, meaning that consumers will continue to demand services despite changes in price, particularly for urgent or essential care, but this does not render price completely irrelevant.

Now, considering the statement that "everyone has a price," it suggests that every purchase decision is purely based on price, which is not always true. Price is a significant factor, but other elements such as quality, necessity, and consumer preferences also play a role.

Concerning why the statement "In the goods market, no buyer would be willing to pay more than the equilibrium price" is false: this disregards scenarios where buyers' preferences, product differentiations, or dynamics of supply and demand affect willingness to pay. For example, in the cases of auctions or collectibles, buyers often pay more than the equilibrium price due to perceived value or rarity.

User Benn Malengier
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