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Econ 545

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ECON 545

BUSINESS ECONOMICS

PAPER PROJECT ONE

INTRODUCTION

The career choice made by an individual today is basically for the entire journey of life. This paper will be basically based on situation A, where Jenny needs advice in making decision for her career as to be a doctor. The focus of this paper will be demand and supply of physicians in US market and it will elaborate on determinants of demand and supply of physicians with recent data analysis, price elasticity of demand and supply, construction of demand and supply graph using the recent data. Thus, based on the analysis the recommendations will be identified in regards to market of physicians in US economy.

DEMAND FOR PHYSICIANS
According to NBC news dated November 4th 2013, 6.27pm ET, stated that “demand for doctors will increase by 2025”. The reason for this change in demand for doctors is due to the determinants of demand. The determinants of demand are the factors that lead to changes in the demand for the doctors in the economy. A) Determinants of Demand for Physicians
The factors that affect the demand for Physicians in the US market are as follows:

i) Price of Physicians
The fee charged by physicians determines the demand for them, as the fees increases the demand of physicians will decline. As it is noted in US economy there are high volume of medical insurance policies which help individuals to cover their medical expenses which leads to increment in the demand for physicians

ii) Medical and insurance facilities
According to NY Times dated, November 2014, the cost of coverage under affordable care act increased, therefore it will affect the demand for physician, and this will decline as people will end up paying more compared to what they use to do.

iii) Resources and technology available
The rate of resources and technology advancement keeps on changing.

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