Assume the government imposes price controls on physician wages where the wage cannot exceed $120.Let the demand for labor be w = 500 - Q and the supply of labor is w = 3Q.

Name: Assume the government imposes price controls on physician wages where the wage cannot exceed $120.Let the demand for labor be w = 500 - Q and the supply of labor is w = 3Q.
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The price ceiling is below the equilibrium price,therefore,w = $120.At this price,only 40 physicians will enter the market,which will lead to a shortage.

Assume the Government Imposes Price Controls on Physician Wages Where