Econ Doctor Essay

3883 Words16 Pages
Introduction Many of our daily purchasing decisions are based on economic principles. In Microeconomics, the relationship of demand and supply determinants helps support why we should engage into certain business decisions, taking into consideration the economic model, price determination, and the market. This microeconomic analysis provides an economic perspective to support the business decision of becoming a physician. The evaluation of this career choice will include key determinants that influence the demand and supply of physicians, including the costs of tuition, price elasticity and estimated future market conditions. According to the Association of American Medical Colleges (2008), “the United States is likely to face a growing shortage of physicians. Due to population growth, aging and other factors, demand will outpace supply through at least 2025.” This microeconomic analysis will support the feedback requested by a high school student that would like to make an intelligent choice for her future. The advice will confirm if becoming a physician is optimal, including research that supports the best location to practice it. Relevant Economic Principles The keystone to this microeconomic analysis is to support estimated projections of physician demand and supply in the United States. According to the Council on Graduate Medical Education (2010), “Patterns of utilizing and providing physician services are based on countless decisions made by more than 300 million people in the US; by approximately 800,000 physicians; by hundreds of thousands of employers and payers who determine the generosity and comprehensiveness of medical insurance offered.” In essence, this supply and demand analysis will attempt to capture the key determinants of physicians’ utilization and key services to provide relevant economic information for decision making. A.
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