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's visit at $50 to control rising health costs but the current market price is $100. What will happen? A) Fewer people will try to see the doctor, and fewer doctors are 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, because the price is lower. D) More people will try to visit the doctor, but there will be fewer doctors willing to see patients at that price.

Question

Leonard Riley

Business

31 January, 18:01

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's visit at $50 to control rising health costs but the current market price is $100. What will happen? A) Fewer people will try to see the doctor, and fewer doctors are 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, because the price is lower. D) More people will try to visit the doctor, but there will be fewer doctors willing to see patients at that price.

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Answers (1)

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Catalina · Answer 1

Option "D" is the correct answer to the following statement.

Explanation:

Once a government imposes a legal maximum limit on the cost of a service, it is called maximum price.

In this situation, there will be more individuals wanting to visit the Medical Professional but fewer Medical professionals willing to see patients at Government's maximum price.

Doctors want to earn as per market price, but patients want to pay the fee as government settled price.