At first glance it seems to explain why health care and education are relatively more expensive, because of the cost issue, but that only explains half of suppl

At first glance it seems to explain why health care and education are relatively more expensive, because of the cost issue, but that only explains half of supply and demand. To the consumer (demand side), it matters not what the cost was to the supplier. It would be almost invisible to them. If this was truly a cost issue, then we should see demand lower as prices rise. Yet there are more medical treatments and people in college than ever before. The other half of the reason is that education and health care are close to a perfectly elastic good. People will pay almost any price for it, so there was little incentive for the supply side to reduce costs. Instead of was easier to find ways to raise prices. The article's referenced examples of technology being used to reduce costs shows that it was possible all along.