In 1996, a group of american doctors called for a limit on the number of foreign-trained physicians permitted to practice in the united states. what effect would such a limit have on the equilibrium quantity and price of doctor services in the united states?

Question

Chico

Social Studies

15 July, 08:13

In 1996, a group of american doctors called for a limit on the number of foreign-trained physicians permitted to practice in the united states. what effect would such a limit have on the equilibrium quantity and price of doctor services in the united states?

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Kenna Wilkerson · Answer 1

Equilibrium is when the supply and demand curves intersect, in other words, quantity demanded and quantity supplied are equal.

Now back to your question, a limit on the number of foreign-trained physicians permitted to practice in the united states will certainly reduce the number of physicians in the country.

The effect of such a limit on the equilibrium quantity and price of doctors is that the market price will fall below the equilibrium price, this means that the quantity of doctors supplied is lesser than the quantity demanded, this will result in a shortage of physicians, and eventually the Market price will rise because of this shortage. In other words, Americans will have to spend more on doctor services.