Question

1. All the following shift the demand curve for cardiology services to the right except: a. a new cardiologist opens an office in town. b. the local factory gives a big raise to its employees. c. the price of an exercise stress test (also called exercise electrocardiogram, treadmill test or stress EKG) falls. d. None of the Above. 2. Assume the market for retail clinics is competitive. What happens in the market for retail clinics when the price of emergency rooms increases? a. We move along the supply curve. b. The supply curve shifts right. c. The demand curve shifts right. d. The supply curve shifts left. e. The demand curve shifts left. 3. When flu seasons strikes in the winter, the demand for doctor visits rises. In a competitive market this results in: a. a decrease in equilibrium price and quantity. b. an increase in equilibrium price, and a decrease in quantity. c. None of the Above. d. an increase in equilibrium price and quantity. e. a decrease in equilibrium price and an increase in quantity. 15. If the cost of retail clinics falls, the price goes down, causing the supply curve to shift to the right. a. True b. False

Answer 1

1 - Option C

The price of the exercise test falls.

The fall in the price will not bring the shift in demand curve but will bring the movement .

The other options are other than price factor and will bring the shift except C

2 - Option C

The demand curve shifts right

This is because retail clinics and emergency beds are the substitutes. Thus , they will be inversely related. Thus option C is correct.

3 - Option D

The increase in equlibrium price and quantity

The demand curve will shift to right in this case.

Price and quantity will fall when demand will fall. Not only one , but both the price and quantity will be affected. Hence option D will only be correct

4 - False

The supply curve will not shift but there will be downward movement because supply reduced with the decrease in price.