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.

---

Definitions:

Retinal Disparity

A binocular cue for perceiving depth: By comparing images from the retinas in the two eyes, the brain computes distance—the greater the disparity (difference) between the two images, the closer the object.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Nervous System

A complex network of nerves and cells that carry messages to and from the brain and spinal cord to various parts of the body.

Stimulus Energies

The physical or chemical forms of energy, such as light, sound, or touch, that can be detected and interpreted by sensory systems.