A is the correct answer.
Ref: https://docs.snowflake.com/en/user-guide/warehouses-considerations.html
Resizing a warehouse generally improves query performance, particularly for larger, more complex queries. It can also help reduce the queuing that occurs if a warehouse does not have enough compute resources to process all the queries that are submitted concurrently. Note that warehouse resizing is not intended for handling concurrency issues; instead, use additional warehouses to handle the workload or use a multi-cluster warehouse (if this feature is available for your account).
The answer literally justifies why it's A.. Scaling up improves query performance and can reduce queing to process queries submitted concurrently. "Use additional warehouses to handle the workload". Everything related to workload is solved through Scaling Out (more VW) and not by increasing the size of the VW.
Answer is D.
As you mention warehouse resizing is not intended for handling concurrency issues(i.e handling more queries). The solution for A would be multi-clustering.
Acc to snowflake document "In general, you should try to match the size of the warehouse to the expected size and complexity of the queries to be processed by the warehouse"
D is correct answer
If queries processed by a warehouse are running slowly, you can always resize the warehouse to provision more compute resources. The additional resources do not impact any queries that are already running, but once they are fully provisioned they become available for use by any queries that are queued or newly submitted.
Resizing a warehouse to a larger size is useful when the operations being performed by the warehouse will benefit from more compute resources, including:
Improving the performance of large, complex queries against large data sets.
Improving performance while loading and unloading significant amounts of data.
D is correct answer because when query is more complex then it will be using more compute power so in that case VW size should be increased from XS to medium
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