The market for medical care is currently in equilibrium. Suppose that the government expands social security and provides subsidies to hospitals. How does this affect the price and quantity in equilibrium?

a.

Pe will increase, but how Qe will change is ambiguous.

b.

Pe will decrease, but Qe will increase.

c.

Qe will increase, but how Pe will change is ambiguous.

d.

Both Pe and Qe will increase.