If the Supply of Health-Care Services Is Highly Inelastic and Larger

Multiple Choice

If the supply of health-care services is highly inelastic and larger government subsidies lead to an increase in the demand for the services,

A) the prices of health-care services will rise by only a small amount, but the quantity supplied will increase substantially.
B) the prices of health-care services will rise substantially, but the quantity supplied will increase by only a small amount.
C) both health-care prices and the quantity of the services supplied will increase substantially.
D) the prices of health-care services will decline, but there will be only a small change in the quantity supplied.