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

question 261

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,

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

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Definitions:

Adjusted Trial Balance

An adjusted trial balance is a listing of all company accounts that will appear in the financial statements after adjusting entries have been made for the accounting period.

Income Statement

A financial statement that shows a company's revenue and expenses over a specified period, leading to the net income or loss for the period.

End-Of-Period Spreadsheet

A tool used in accounting to summarize account balances and adjustments at the end of an accounting period, aiding in the preparation of financial statements.

Journalized Closing Entries

These are the final entries made in the accounting ledger to close the books at the end of an accounting period, ensuring that income and expense accounts are properly reset for the next period.