I don't find this to be surprising. Healthcare services have inelastic demand. If you have a broken leg, and the average income is $X or $2X, clearly the hospi

I don't find this to be surprising. Healthcare services have inelastic demand. If you have a broken leg, and the average income is $X or $2X, clearly the hospital can charge twice as much in the second case and still mend legs. What is surprising is the third section: > The rising health share explained by rising quantities per capita (not prices!) I don't think the author really makes the point, however. They don't seem to claim that higher income people are getting more doctor's visits or more procedures done or taking more medicine (though this may all be true). Rather, they claim that the we are putting more resources into healthcare, a somewhat orthogonal claim.