The following diagram depicts the market for physicians' services that is originally in equilibrium at the point where demand and supply (D0 and S0) intersect. As physician supply increases from S0 to S1, an even larger concurrent shift in demand from D0 to D1:
a. will result in a new equilibrium at P2 and Q2.
b. will cause overall spending on physicians' services to increase.
c. will force physicians to limit the number of patients they see.
d. will increase demand for physicians' services, but not spending.
e. will result in a decrease in the price of physicians' services.
b. will cause overall spending on physicians' services to increase.
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The marginal physical product of labor is
a. the slope of the total output curve at the relevant point. b. the negative of the slope of the total output curve at the relevant point. c. the slope of the line connecting the origin with the relevant point on the total output curve. d. the negative of the slope of the line connecting the origin with the relevant point on the total output curve.
An increase in intended investment leads to a higher equilibrium level of national income
Indicate whether the statement is true or false