Demand in decision making and economics in health
Demand and its importance in decision making
Demand is the desire of consumers to buy goods and services based on their willingness and ability to pay for the products or services. Demand in decision making is vital since it helps the management set goals, determine the prices to set, and plan on what to supply and what quantities. Factors influencing demand include; price of a product, income of buyers, customer tastes and preferences, and changes in prices of substitute and complementary products or services.
Economics in health
Normative economics mainly focus on what ought to be or what should be done based on value judgments to promote economic fairness. Positive economics is mainly based on facts that cannot be changed, and they are not based on opinions. Economics in health care is vital since it guides on the effective use of the available resources to maximize the quality of health services provided to patients. Economics also helps in the comparative analysis of medical costs and the outcomes of various interventions in healthcare.