Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling, the

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A price ceiling set below the equilibrium price (in this case, $150 instead of $200) makes the price of physicals more affordable, leading to an increase in the quantity demanded as more people can afford or are willing to pay for physicals at the lower price. Conversely, the lower price makes it less profitable for doctors to offer physicals, leading to a decrease in the quantity supplied. This does not shift the demand or supply curves themselves but moves along them, resulting in a shortage where the quantity demanded exceeds the quantity supplied at the price ceiling.

Suppose the Equilibrium Price of a Physical Examination ("Physical") by a Doctor