Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. 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 increased from Qd to QM as a result of the subsidy.
B. The amount of medical services provided has decreased from Q0 to Qd as a result of the subsidy.
C. The amount of medical services provided has remained unchanged as a result of the subsidy.
D. The amount of medical services provided has increased from Q0 to QM as a result of the subsidy.
Answer: D
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