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

question 59

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 quantity of physicals demanded increases.
• B)there is shortage of physicals.
• C)the quantity of physicals supplied decreases.
• D)All of the above are correct.

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Definitions:

Keep Up With Inflation

The process of adjusting spending, saving, or investment strategies to maintain purchasing power as the general price level increases over time.

CPI Increased

An indication that the Consumer Price Index has risen, signifying a period of inflation where consumer goods and services prices have gone up.

Base Year

A specific year chosen as a reference point for financial or economic data analysis.

Purchasing Power

The amount of goods or services that can be bought with one unit of a currency, showcasing its value.