Suppose the Equilibrium Price of Oranges Is $0

question 35

Multiple Choice

Suppose the equilibrium price of oranges is $0.79 an orange, but government takes steps to prevent the price from exceeding $0.60 an orange. The likely result will be a:

• A) lower equilibrium price for oranges as the supply curve for oranges shifts to the right.
• B) higher equilibrium price for oranges as the demand curve for oranges shifts to the right.
• C) shortage of oranges as the price ceiling keeps the market from reaching equilibrium.
• D) surplus of oranges as the price ceiling keeps the market from reaching equilibrium.

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Definitions:

Upcoding

The fraudulent practice of using billing codes that indicate a more expensive service was performed than was actually provided, to increase reimbursement from Medicare or insurance.

Increased Revenue

An upward trend in the amount of money generated from the sales of goods or services within a company.

Serious Fines

Substantial monetary penalties imposed as punishment for severe violations of laws or regulations.

ICD-9-PCS

An abbreviation for the International Classification of Diseases, Ninth Revision, Procedure Coding System; a system used in the United States to classify medical procedures.