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Income, Risk and Consumer Demand for Healthcare

Income, Risk and Consumer Demand for HealthcareYou must submit written responses to these questions. Please place in APA format 6th Edition. this has to be placed in Essay form. One worded answers will not be accepted.Why is the depreciation of capital good a cost of society? In what ways does a persons health depreciate?Why might older peoples healthcare expenditures increase in the Grossman model even though their desired health stocks may be lower?List at least three factors that might increase an individuals marginal efficiency of investment in health capital.The deductible feature of an insurance policy can affect the impact of moral hazard. Explain this in the context either of probability of treatment and/or amount of treatment demanded.Describe the benefits to society from purchasing insurance. Describe the costs. Define and discuss the welfare gains from changes in insurance coverage.If only risk-averse people will buy health insurance, why do many people who buy health insurance also buy lottery tickets (an activity more consistent with risk taking)? Speculate on the differences and similarities.

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