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Suppose the market for hospital outpatient treatment is in equilibrium when a price ceiling is set below the equilibrium price. What do you expect to happen?

Answer :

Answer:

Demand would increase and supply would fall. The number of hospitals offering outpatient treatment would reduce.

There would be a shortage.

Explanation:

A price ceiling is when the government sets the highest price a producer can charge for his good or service.

Price ceiling is usually set below equilibrium price.

When a price ceiling is enacted, the price of that good falls, demand increases and supply falls. This leads to a shortage.

The number of hospitals offering outpatient treatment would reduce.

I hope my answer helps you

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