In the diagram, the supply curve shows the number of spaces in a car park and the demand curves show the demand for spaces on four different days, $D_1$, $D_2$, $D_3$ and $D_4$.
The owner wishes to charge a parking fee on each of these days to allocate the spaces according to the market mechanism.
Which pricing policy should the owner use?
1 )
set a fixed price at $P_1$
2 )
set a fixed price at $P_4$
3 )
vary prices between $P_2$ and $P_3$
vary prices between $P_1$ and $P_4$
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