-In the Above Figure,if a Medicare Subsidy That Had Previously $\mathrm { P } _ { 0 }$

question 32

Multiple Choice

-In the above figure,if a Medicare subsidy that had previously been paid by the government has now been eliminated,the result will be

• A)an increase in the price received by producers,from \(\mathrm { P } _ { 0 }\) to \(\mathrm { P } _ { \mathrm { s } }\) .
• B)a decrease in the price received by producers,from \(\mathrm { P } _ { \mathrm { s } }\) to \(\mathrm { P } _ { 0 }\) .
• C)an increase in the price paid by consumers,from \(\mathrm { P } _ { 0 }\) to \(\mathrm { P } _ { \mathrm { s } }\) .
• D)a decrease in the price paid by consumers,from \(\mathrm { P } _ { \mathrm { s } }\) to \(\mathrm { P } _ { 0 }\) .