Asked by
Clinton Collins
on Oct 26, 2024
Verified
Rapidly increasing health costs have been a major political concern since at least 1992.Suppose the government sets the maximum price for a normal doctor visit at $20 to control rising health costs but the current market price is $40.What is MOST likely to happen?
A) More people will try to visit the doctor,but there will be fewer doctors willing to see patients at that price.
B) The same number of people will try to visit the doctor,and the same number of doctors are willing to see patients at that price.
C) More people will be able to see the doctor,since the price is lower.
D) Fewer people will try to see the doctor,and fewer doctors are willing to see patients at that price.
Health Costs
Expenses related to maintaining the health of individuals, including medical care, medications, and hospital services.
Maximum Price
A price ceiling set by the government, meant to prevent prices from reaching levels considered too high.
Market Price
The current price at which an asset or service can be bought or sold.
- Identify the potential consequences of price controls for producers and consumers.
Verified Answer
JH
Learning Objectives
- Identify the potential consequences of price controls for producers and consumers.
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