Suppose the Equilibrium Price of a Physical Examination ("Physical") by a Doctor

question 319

Multiple Choice

Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling, the

• A)demand curve for physicals shifts to the right.
• B)supply curve for physicals shifts to the left.
• C)quantity demanded of physicals increases, and the quantity supplied of physicals decreases.
• D)number of physicals performed stays the same.

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Definitions:

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