Refer to the above figure. Medicare subsidies have increased the price of medical services to Ps. The quantity demanded of medical services is

A deadweight loss

A) is possible only if the good is underproduced but is not possible if the good is overproduced. B) subtracts only from producer surplus. C) is a loss to consumers and a gain to producers. D) is a loss inflicted on the entire society.

In the production of goods and services, trade-offs exist because

A. society has only a limited amount of productive resources. B. human wants and needs are limited at a particular point in time. C. we have abundant resources to choose from. D. not all production is efficient.