The diagram shows the demand and supply curves for parking spaces in a hospital car park.
The managers decide to rely on the price mechanism to allocate parking spaces at the hospital most effectively.
What is required in order for this to work?
1 )
Alternative means of transport must be provided for those unable to afford price OP.
2 )
A survey will be needed to find out the amount users are willing to pay.
3 )
The capacity of the car park will need to be expanded.
The price charged for parking spaces must be OP.
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