Healthcare is an important aspect of the economy, especially in Canada. In Canada people receive healthcare when they become Canadian citizens, in other words the system is funded by the government. When we think about healthcare in economic terms, we can see that it is not necessarily about a simple understanding of supply and demand. As we have learned in this course, the supply and demand function is used for any commodity, be it a good or a service. The fact that health care is considered a public good affects the market for that particular good. This document will show the current state of the healthcare system, its future demand and future implications in Canada. Additionally, it will look at Canada's healthcare system at its most fragile and how baby boomers will not have free access to retirement homes and healthcare in the future. To understand the future of healthcare, you must first understand the following aspects of health healthcare which include: how the healthcare system works, how it is financed, how we understand the demand and supply of healthcare and its relationship to the Canadian healthcare system and the future impact of the healthcare market in Canada. First of all, we must understand that the demand for healthcare is a demand derived from the demand for health. Douglas McCready stated in his lecture that “in the case of healthcare, there is no direct demand for healthcare.” From what we have learned in economics there are some products or services that cause the demand for other products, also called derived demand (McCready, Lesson 4). As for the Canadian healthcare system you need to know that it is funded by the government......middle of paper......and will have to bear the burden of the future. From the data provided in the above article it is evident that the percentage of the elderly population will increase by 2025. This document has explained the current state of the healthcare system, its future demand and future implications in Canada. It also showed that in the future the roles will be reversed when evaluating who will benefit. Just by looking at the financing aspect of the healthcare system one should be able to see that the working class population is decreasing and so are the federal and provincial funds that could be used for the healthcare market. Because economists who understand this concept would know that health care may be in decline and that some part of it would need to be privatized to continue providing today's services..