Suppose That the Average Cost of a Visit to the Dentist

question 120

Multiple Choice

Suppose that the average cost of a visit to the dentist is $100.If the government imposes a price ceiling of $50 on the cost of a dental visit,there will be:

• A) an excess supply of dental visits.
• B) an excess demand for dental visits.
• C) an increase in the equilibrium number of dental visits.
• D) no change in the number of dental visits.