Case Study 2 (30 Points) The Market for Long-Term Care, I need graphs as well as wording to the questions listed below.

More than 12 million Americans rely on long-term services and supports in home, community, or institutional settings. The number may more than double by 2050 (Commission on Long-Term Care 2013). Only a small share get services in nursing homes, and the trend is toward lower rates of nursing home care. Several factors may influence how and where Americans get these services (Spetz et.al. 2015). First, Medicaid is a major funder of long-term care services and supports, so any changes in Medicaid policy can have major effects. Second, rates of disability have been trending down for a number of years, but there is no guarantee that this trend will continue. Third, use of long-term services and supports varies widely among major ethnic groups, so changes in the composition of the population might have major effects on demand. Technology represents a wild card in efforts to predict the volume and nature of long-term services and supports. For example, the development of smart homes and devices might well increase the share of the population getting these services in their homes.

(4) What sorts of technological changes seem likely to shift the demand for nursing home care? Innovation is significant for home medical services right now. As well as working with the job of home medical services inside the general medical services framework, future improvements in home medical services innovation can possibly assist with advancing local area based freedom for people. Dynamic home telemonitoring frameworks car record and impart essential signs, weight, or side effects to a distant doctor or home wellbeing association. Bed sensors that catch fretfulness, rest interferences, or heartbeat and breathing during rest are detached telemonitoring innovations. (National Academy of Sciences, 2015)

(3) How would your initial graph change given the scenario you outline in (3) above?

(4) What sorts of health changes seem likely to shift the demand for nursing home care?

(3) How would your initial graph change given the scenario you outline in (4) above? (4)

Part 3: Application Questions (30 Points) If the cross-price elasticity of clinic visits with respect to pharmaceutical prices is -0.18 By how much will clinic visits change if pharmaceutical prices rise by 5 percent? (2) Xed= (change in % quantity demanded)/ (Change in % of price)