-Refer to the above figure.Medicare subsidies have increased the price of medical services to $\mathrm { P } _ { \mathrm { s } }$ .The quantity demanded of medical services is
A) $\mathrm { Q } _ { \mathrm { M } }$ .
B) $\mathrm { Q } _ { 0 }$ .
C) $\mathrm { Q } _ { \mathrm { d } }$ .
D)undetermined without more information.

Question

-Refer to the above figure.Medicare subsidies have increased the price of medical services to $\mathrm { P } _ { \mathrm { s } }$ .The quantity demanded of medical services is
A) $\mathrm { Q } _ { \mathrm { M } }$ . 
B) $\mathrm { Q } _ { 0 }$ . 
C) $\mathrm { Q } _ { \mathrm { d } }$ . 
D)undetermined without more information.

Quizplus · Accepted Answer

Medicare subsidies have increased the price of medical services, which will lead to a decrease in the quantity demanded. The new equilibrium quantity will be at Qs, which is less than Qd.

-Refer to the Above Figure Ps\mathrm { P } _ { \mathrm { s } }Ps​

-Refer to the Above Figure $\mathrm { P } _ { \mathrm { s } }$