What would happen to the price and quantity of medical services if a new doctor's office opened in a small town?
A) Equilibrium price and quantity would rise because both supply and demand would increase.
B) Equilibrium price and quantity would fall because both supply and demand would decrease.
C) Equilibrium price and quantity would rise because demand would decrease and supply would remain constant.
D) Equilibrium price would fall and quantity would rise because supply would increase and demand would remain constant.
E) Equilibrium price and quantity would fall because demand would decrease and supply would remain constant.
Correct Answer:
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