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2. Consider the following market demand and supply functions for physician ofce visits: Q13 = 150 15p and Q5 =10P 10. (12 points total) a.
2. Consider the following market demand and supply functions for physician ofce visits: Q13 = 150 15p and Q5 =10P 10. (12 points total) a. b. c. Graph the supply and demand functions with price (P) on the y-axis and quantity (Q) on the x-axis. Show and label the intercepts. (3 points) What are the equilibrium price and quantity? Label this point on the graph. (3 points) Suppose the government mandates that the price must be $5. How much would quantity demanded be? How much would quantity supplied be? Would all patients be able to receive the medical care they want at a price of $5? (3 points) Suppose the government mandates that the price must be $9. How much would quantity demanded be? How much would quantity supplied be? Would all patients be able to receive the medical care they want at a price of $9? (3 points)
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