Question: Making Predictions Suppose that your state wanted to make health care more affordable for everyone. To do this, state legislators put a series of price controls- price ceilings-in place that cut the cost of medical services in half. In short paragraphs, explain your answers to the following questions:
a. What would happen to the demand for medical services at the new, lower price?
b. What would happen to the supply of medical services that doctors would be willing to provide at the new, lower price?
c. What considerations would new doctors take into account when they decide where to set up their practice? Explain the reasons for your answers.