Rapidly increasing health costs have been a major political concern since at least 1992. Suppose the government sets the maximum price for a normal doctor's visit at $20 to control rising health costs but the current market price is $40. What will happen

A. More people will try to visit the doctor, but there will be fewer doctors willing to see patients at that price.

Explanation:

Since the government decides to impose a price ceiling that is below the market price, the number or the demand of people willing to see the doctors will increase exponentially as a result. Invariably, the number of doctors willing to see patients at the price lower than the market price will reduce. When government imposes price ceiling on goods and services like this, they assume the market prices to be too high, hence too expensive for the consumers to afford. Of course, with reduction in price comes an increase in demand, but the producers or the people that offers the services wouldn't want to render those services or sell those goods below market prices.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.