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.

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Definitions:

Residual Value

The estimated worth or salvage value of an asset at the end of its useful life.

Net Income

The total profit of a company after all expenses, including taxes and operational expenses, have been deducted from total revenue; essentially, it's the bottom line of the income statement.

Average Rate

A term often used in finance to describe the mean rate of return or the mean rate of interest over a specified period.

Fixed Asset

Fixed asset, also known as a non-current asset, is a long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income.