In the diagram, D is the demand curve for a commodity. ${S_1}$ and ${S_2}$ are the supply curves before and after an intervention by the government.
What action has the government taken?
It has given producers a subsidy to encourage greater output.
2 )
It has given a subsidy to consumers.
3 )
It has imposed a tax equal to ${P_2}-{P_1}$ to discourage production.
4 )
It has purchased a quantity ${Q_2}-{Q_1}$ for government use.
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