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Cost-benefit analysis in terms of legislators being reelected affected

Post an explanation for how you think the cost-benefit analysis in terms of legislators being reelected affected efforts to repeal/replace the ACA. Then, explain how analyses of the votes views may affect decisions by legislative leaders in recommending or positioning national policies (e.g., Congress’ decisions impacting Medicare or Medicaid). Remember, the number one job of a legislator is to be re-elected.

Sample Solution

tions of the purchaser’s budget also plays a part in the demand in price of the elasticity. Products that consume a large portion of the purchaser’s budget tend to have greater elasticity. The relative high cost of such goods will cause consumers to pay attention to the purchase and seek substitutes. In contrast, demand will tend to be inelastic when a good represents only a negligible portion of the budget. Cars are a purchase which last a long period of time and so are called consumer durables. When a price of a product first changes, consumers are more responsive to price change and so the demand is elastic. However a consumers is less likely to buy another car until their car wears out and buying a car becomes a necessity, this makes the demand of cars price inelastic. The greater the requirement for a product or service leads to lower elasticity. Consumers will attempt to purchase essential products not considering of the price. Luxury products, tend to have larger elasticity. However, some goods that initially have a low degree of necessity are habit-forming and can become necessities to consumers. This again differs for different cars, luxury cars will have greater elasticity. The duration of the price also affect the elasticity of the product. Non-durable products , have greater elasticity over a long period of time. In a short period of time it can be difficult for customers to find substitutes to combat the price change, however over longer periods of time the customers are able to research into substitutes and change their behaviour. An example of this is a sudden increase in fuel , consumers may continue to pay the higher prices for fuel in the short term, however after seeing the impact of the cost, they may decide to find alternatives such as public transport, carpooling, or buying more fuel-efficient vehicles over a longer period of time. However, this tendency does not hold for consumer durables. The demand for durables tends to be less elastic, as it becomes necessary for consumers to replace them with time. The loyalty which some consumers have to a certain brand affects the elasticity of price of a certain product or service. An example to this is Apple; many people only buy apple products because of Apple’s reputation and brand loyalty. The fact that people have this connection to brands can countermand sensitivity to fluctuations in

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