allocation of scarce resources and the inelastic demand for healthcare lends it
self to economic analysis. Equitable allocation of a commodity is one in which
everyone receives a minimum standard and quantity. So in terms of full equality
in the society everyone should consume the commodity equally. In healthcare this
argument becomes complicated, should everyone receive a minimum standard of
that hospital buildings, doctors and medical equipment all take up resources.
The best standard of healthcare could only be given if all of the government?s
resources were allocated to the provision of health. This would be a foolish
thing to do, as other commodities would not be produced which may be detrimental
to health and other aspects of life. Healthcare is different from all other
patient. Consumers can distinguish between two types of product and choose the
educated enough about medicine to choose between two treatments and must
recommend a treatment that is costly and therefore will bring in higher profit
for himself without the average person knowing any better.