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,

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When a price ceiling is imposed below the equilibrium price, it creates excess demand or a shortage. In this case, the quantity demanded of physicals will increase because the price has decreased, but the quantity supplied of physicals will decrease because doctors may not want to provide physicals at a lower price. Therefore, the shortage is equal to the difference between the quantity demanded and the quantity supplied. Hence, the quantity demanded of physicals increases and the quantity supplied of physicals decreases.

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