The diagram shows the market for onions in equilibrium at point X. The government has a stock of onions and wants to establish a new equilibrium at point Y.
Which actions should the government take?
It should buy an amount equal to XY and subsidise producers by a sum equal to YZ.
2 )
It should buy an amount equal to XY and tax producers by a sum equal to YZ.
3 )
It should sell an amount equal to XY and subsidise producers by a sum equal to YZ.
4 )
It should sell an amount equal to XY and tax producers by a sum equal to YZ.
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