Market mechanisms among nursing homes: a correlation analysis of price, quality, and demand

IntroductionMarket failure represents a situation when a market cannot reach a reasonably competitive balance. In perfectly competitive markets, there is no market power on pricing or access. Consumers and producers have equal price information and can make rational decisions [9]. In markets which operate satisfactorily, market equilibrium is established. While price and supply quantity are positively correlated, price and quantity demand are negatively correlated. The price elasticity of demand is a measure that indicates how the quantity demand changes when the price changes. A demand curve, which is vertical,…