Question

How would the following factors affect the demand for your proposed program? My program is Quitting...

How would the following factors affect the demand for your proposed program?

My program is Quitting smoking

1- A high price ceiling placed on participant fees.

2- The number of similar health education programs increased.

Homework Answers

Answer #1

Proposed programme : Quitting smoking

1) A high price ceiling placed on participant fees : A high price ceiling leads to shortage in the economy . Since the price is not allowed to go above a certain level ( price ceiling is only effective when placed lower than equilibrium price ) so the quantity demanded is higher than quantity supplied . So demand for the programme will rise due to the ceiling .

2) A number of similar health education programmes increased : such programmes are substitutes to this programme . So if the quantity of substitutes are increasing , people will prefer the ones with the lowest participation fees . So demand will fall .

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