Question

Price per visit	Quantity demanded	Quantity supplied
$20	300	150
25	275	175
30	250	200
35	225	225
40	200	250
45	175	275
50	150	300

Assuming the original four physicians, if a price ceiling is set at $25 per office visit, the outcome of such a policy will be 

a. A stable equilibrium. 

b. Higher quantity supplied than demanded. 

c. An oversupply of physician visits. 

d. A shortage of physician visits. e. None of the above.

Answer 1

d. Shortage of physician visits because price ceiling is less than the equilibrium price hence the supply will be lower than demand.