-In the above figure, the total dollar amount of the Medicare subsidies provided by the government is equal to
A)the difference between Ps and P₀ multiplied by QM.
B)the difference between Ps and Pd multiplied by QM.
C)the difference between P₀ and Pd multiplied by Qd.
D)the difference between Ps and Pd multiplied by Q₀.

Question

-In the above figure, the total dollar amount of the Medicare subsidies provided by the government is equal to
A)the difference between Ps and P₀ multiplied by QM. 
B)the difference between Ps and Pd multiplied by QM. 
C)the difference between P₀ and Pd multiplied by Qd. 
D)the difference between Ps and Pd multiplied by Q₀.

Quizplus · Accepted Answer

The total dollar amount of the Medicare subsidies is calculated by the difference between the supply price (Ps) and the demand price (Pd) multiplied by the quantity of Medicare services (QM) provided.

-In the Above Figure, the Total Dollar Amount of the Medicare