-Refer to the above figure.Medicare subsidies have increased the price of medical services to $\mathrm { P } _ { \mathrm { s } }$ .Which of the following statements is true about the effect the Medicare subsidy has had on the consumption of medical services?
A)The amount of medical services provided has decreased from $\mathrm { Q } _ { 0 }$ to $\mathrm { Q } _ { \mathrm { d } }$ as a result of the subsidy.
B)The amount of medical services provided has increased from $\mathrm { Q } _ { 0 }$ to $\mathrm { Q } _ { \mathrm { M } }$ as a result of the subsidy.
C)The amount of medical services provided has increased from $\mathrm { Q } _ { \mathrm { d } }$ to $\mathrm { Q } _ { \mathrm { M } }$ as a result of the subsidy.
D)The amount of medical services provided has remained unchanged as a result of the subsidy.

Question

-Refer to the above figure.Medicare subsidies have increased the price of medical services to $\mathrm { P } _ { \mathrm { s } }$ .Which of the following statements is true about the effect the Medicare subsidy has had on the consumption of medical services?
A)The amount of medical services provided has decreased from $\mathrm { Q } _ { 0 }$ to $\mathrm { Q } _ { \mathrm { d } }$ as a result of the subsidy. 
B)The amount of medical services provided has increased from $\mathrm { Q } _ { 0 }$ to $\mathrm { Q } _ { \mathrm { M } }$ as a result of the subsidy. 
C)The amount of medical services provided has increased from $\mathrm { Q } _ { \mathrm { d } }$ to $\mathrm { Q } _ { \mathrm { M } }$ as a result of the subsidy. 
D)The amount of medical services provided has remained unchanged as a result of the subsidy.

Quizplus · Accepted Answer

The Medicare subsidy has shifted the supply curve to the right, from S0 to S1. This has led to a decrease in the price of medical services from Ps to Pm and an increase in the quantity of medical services provided from Q0 to Qm.

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

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