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