The following diagram depicts the market for physicians' services that is originally in equilibrium at point a with demand and supply at D 0 and S 0 ....
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Question

The following diagram depicts the market for physicians' services that is originally in equilibrium at point a

with demand and supply at D0 and S0. As physician supply increases from S0 to S1, a concurrent shift in demand from D0 to D1

Select one:

a. may be the result of physician-induced demand.

b. will cause overall spending on physicians' services to increase. 

c. will force physicians to limit the number of patients they see. 

d. both a and b. 

e. all of the above. 

Diagram.PNG

Diagram.PNG

Top Answer

Both a and b. A - because a shift in supply causes price to drop which encourages people to avail physician... View the full answer

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