Insurers want to understand the Bay Area market for pediatric physician primary care services, to help decide appropriate reimbursement rate for a pediatric primary care visit. Let the demand for pediatric visits be Q = 240 - P, and let the supply of these visits be Q = 30 + 2P. Quantity is in number of pediatric visits, and price is in dollars.
1. Determine the law of demand? Is it satisfied here?
2. Sketch the demand and supply curves for the market for pediatric visits. Label the curves and the axes with titles, and calculate and label the equilibrium price and quantity. Remember, price is in dollars.