What Would Happen to the Price and Quantity of Medical

question 52

Multiple Choice

What would happen to the price and quantity of medical services if an existing doctor's office closed in a small town,ceteris paribus?

• A) Equilibrium price and quantity would rise because both supply and demand increased.
• B) Equilibrium price and quantity would fall because both supply and demand decreased.
• C) Equilibrium price would rise and quantity would fall because supply decreased and demand was constant.
• D) Equilibrium price and quantity would rise because demand decreased while supply was constant.
• E) Equilibrium price and quantity would fall because demand decreased and supply was constant.

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Definitions:

Linehaul Freight Carriers

Companies that specialize in the long-distance transportation of goods, typically from one city or metropolitan area to another.

Intermodal Trains

Rail vehicles designed for transporting cargo in a variety of container types, enabling efficient transfer between different modes of transportation like ships and trucks.

Transportation Management Systems (TMS)

TMS are advanced software aimed at optimizing the planning, execution, and optimization of physical movements of goods, ensuring efficient, effective, and cost-controlled transportation operations.

Equipment Shortages

Situations wherein the demand for specific equipment exceeds the available supply, often leading to operational delays and increased costs.