Final answer:
The demand for healthcare is considered to be elastic primarily because of changing health insurance policies. When people have insurance, they tend to demand higher quantities of healthcare services, which increases the overall demand.
Step-by-step explanation:
The demand for healthcare is considered to be elastic primarily because of changing health insurance policies. When people have insurance, they tend to demand higher quantities of healthcare services, which increases the overall demand. For example, in the United States, private healthcare insurance encourages a greater demand for healthcare services. This is supported by data showing higher healthcare expenditures in the US compared to other countries.