Insurers want to understand the Bay Area market for pediatric physician primary care services, to help decide the 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. The quantity is in number of pediatric visits, and the price is in dollars.
1. Determine the law of demand? Is it satisfied here?
2. Illustrate the supply and demand curves for the market for pediatric visits. Label the curves and axes with the titles, and determine and label the equilibrium price and the quantity.