Abstract
The typical undergraduate textbook in health economics illustrates the production of health and then discusses the purchase of health care and its demand. This paper provides a unique four-quadrant graphical model linking the production of health to the consumption of health care. We show how an individual’s purchase of health care links to their optimal health status and consumption possibilities frontier between health status and all other goods. We then apply our model to a change in the price of health care, an illness such as COVID-19, and the purchase of health insurance.
Recommended Citation
(2024)
"Graphical Analysis of Consumer Behavior in the Market for Health Care,"
Journal of Economics and Finance Education: Vol. 23:
Iss.
2, Article 12.
Available at:
https://scholarship.rollins.edu/jefe/vol23/iss2/12
