Suppose That the Average Cost of a Doctor's Visit Is

question 161

Essay

Suppose that the average cost of a doctor's visit is $100.If the government imposes a price ceiling of $50 on the cost of a doctor's visit, there will be:
A.an excess supply of doctor's visits.
B.an excess demand for doctor's visits.
C.an increase in the equilibrium number of doctor's visits.
D.no change in the number of doctor's visits.

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Definitions:

Capacity Utilization Rate

A metric used to measure the rate at which potential output levels are being met or used.

Interest Rate

The percentage at which interest is charged or paid on amounts of money, reflecting the price of credit or returns on investment.

Personal Property

Movable property that is not attached to real estate, including vehicles, furniture, and personal belongings.

U.S. Government Bonds

Debt securities issued by the United States Department of the Treasury to fund federal government operations and obligations, considered low-risk investments.