On the diagram, D shows the demand curve for a commodity. S1 and S2 show the supply curves before and after a government intervention. What action did the government take?
- AIt has given producers a subsidy to encourage greater output.
- BIt has given a subsidy to consumers.
- CIt has imposed a tax equal to P1 – P2 to discourage production.
- DIt has purchased a quantity Q2 – Q1 for government use.