The market demand for medical checkups per day, QF, is Qf = 40(200 – Pp), where p- represents the price of a checkup. The market demand for the number of dental checkups per day, QT, is QT = 40(75 - pT), where pt represents the price of a dental checkup. The market supply of medical checkups is QF = 50pF - 20pT. The market supply of dentists is QT = 40PT - 5PF- The supplies are linked because people decide whether to be doctors and dentists on the basis of relative earnings. The quantity supplied of medical checkups depends on the price of dental checkups. What does the supply function property imply about the effect of price changes? As pf increases, more people become doctors and fewer people become dentists. Similarly, as p- increases, fewer people become doctors and more people become dentists.

The market demand for medical checkups per day, QF, is Qf = 40(200 – Pp), where p- represents the price of a checkup. The market demand for the number of dental checkups per day, QT, is QT = 40(75 - pT), where pt represents the price of a dental checkup. The market supply of medical checkups is QF = 50pF - 20pT. The market supply of dentists is QT = 40PT - 5PF- The supplies are linked because people decide whether to be doctors and dentists on the basis of relative earnings. The quantity supplied of medical checkups depends on the price of dental checkups. What does the supply function property imply about the effect of price changes? As pf increases, more people become doctors and fewer people become dentists. Similarly, as p- increases, fewer people become doctors and more people become dentists.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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