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.

---

Definitions:

Commercial Purposes

Activities or transactions conducted with the goal of generating profit or involving the buying and selling of goods and services.

Implied Warranties

Warranties that are not expressly stated but are assumed by law to exist in a sales contract to protect the buyer.

Common Law

A legal system grounded in established precedents and traditions, not on written statutes.

Constructive Eviction

Occurs when a landlord's failure to maintain the leased premises effectively forces the tenant to leave due to uninhabitable conditions.