In 1996, a group of American doctors called for a limit on the number of foreign-trained physicians permitted to practice in the United States. What effect would such a limit have on the equilibrium quantity and price of doctor services in the United States? Assume that at prices below p, the quota would be non-binding, and that without a quota, American-and-foreign-trained physicians would be willing to provide services. 1.) Use the line drawing tool to draw the portion of the new market supply curve for doctor services that would be different than the original supply curve (without the limit), if any. Label this line 'Slimit' 2.) Use the point drawing tool to indicate the equilibrium price and quantity of doctor services with the limit. Label this point 'elimit'. Carefully follow the instructions above, and only draw the required objects. p, Price per unit Physician Services Q. Units per year S

In 1996, a group of American doctors called for a limit on the number of foreign-trained physicians permitted to practice in the United States. What effect would such a limit have on the equilibrium quantity and price of doctor services in the United States? Assume that at prices below p, the quota would be non-binding, and that without a quota, American-and-foreign-trained physicians would be willing to provide services. 1.) Use the line drawing tool to draw the portion of the new market supply curve for doctor services that would be different than the original supply curve (without the limit), if any. Label this line 'Slimit' 2.) Use the point drawing tool to indicate the equilibrium price and quantity of doctor services with the limit. Label this point 'elimit'. Carefully follow the instructions above, and only draw the required objects. p, Price per unit Physician Services Q. Units per year S

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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