In the diagram, D shows the demand curve for an agricultural commodity, while S represents the original supply curve. The government undertakes to keep farmers’ incomes at no less than this starting level. The harvests in the four later years are represented by the supply curves S1 – S4. In which years will the government have to pay additional income to farmers?
- A1 and 2
- B1 and 4
- C2 and 3
- D3 and 4