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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