Question
Thanks a lot .
A shortage of hospital beds will likely lead to an increase in the supply of hospital beds. a decrease in the demand for hospital beds. an increase in the price of a hospital stay. a decrease in the price of a hospital stay. none of the above. Suppose angioplasty and coronary artery bypass graft (CABG) surgery are substitute treatment alternatives for coronary artery disease. What should happen to the equilibrium price and quantity of angioplasty procedures if a new CABG technique is introduced that is less invasive (requiring a 4 inch incision under the breast bone rather than cracking open the patient's rib cage) and requires one-third the recovery period of regular CABG surgery. Both price and quantity will increase. Both price and quantity will decrease. Price will increase and quantity will decrease. Price will decrease and quantity will increase. The introduction of a new CABG procedure should have no effect on the price or quantity of angioplasty procedures. 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? A surplus will develop. A shortage will develop. Quantity demanded will decrease. The number of outpatient visits will rise. The demand for outpatient procedures will fall. A physician's office expenses increase 10 percent, so she decides to raise the price of office visits. Assuming the demand curve for office visits does not shift, what will happen to the total number of office visits and practice revenues? Office visits and total revenue stay the same if demand is elastic. Office visits and total revenue rise if demand is inelastic. Office visits and total revenue fall if demand is inelastic. Office visits will fall and total revenue will rise if demand is inelastic. Office visits will rise and total revenue will fall if demand is elastic.
Explanation / Answer
6 C BECAUSE WHEN SUPPLY IS LESS THAN DEMAND THERE IS COMPITITION AMONG THJE CONSUMER TO GET THE THING SO THEY PAY HIGHER PRICE FOR THAT THING.
7. B. BECAUSE HIGH INCOME PEOPLE WILL GO IN FOR CABG WHICH WILL REDUCE THE DEMAND FOR AND PRICE OF ANGOIPLASTY AND WHEN THE PRICE WILL BE LOW SUPPLY WILL AUTOMATICALLY WILL COME DOWN. ITS EXPLAINATION COMES FROM THE LAW OF SUPPLY.
8. D BECAUSETHE VISITS WILL BE CHEAPER AS COMPARED TO EARLIER.
