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Health Economics Exam II Answer 1 of these 2 questions. Discuss what is known about price elasticities of demand for various health care services. Discuss why policy makers need to have elasticity estimates when proposing new benefit plans. Answer 1 of these 2 questions. Describe the costs and benefits of systems that use non-physicians as primary-care providers. Describe the economic issues at play when a physician chooses whether to specialize and when they have chosen to specialize, the economic factors in picking a specialty. Answer 1 of these 2 questions. Comment on the notion of induced demand for physicians and how this relates to the observation that where there are more hospitals there are higher rates of utilization. Discuss the search process for physician services by patients paying attention to how patients search, on what they search, what causes patients to switch from one physician to another and why you can conclude that price differences are more likely to be observed in larger cities than in smaller ones. Answer 1 of these 2 questions. Define and discuss the notion of the “residual claimant” and why the organization of a hospital is important in determining who it is likely to be. the matter of the “residual claimant.” Discuss the data as it relates to the changing nature of what hospitals do. Answer this question. Summarize (fully) the “Demise of the American Hospital”