In which set of circumstances will prices play no part in determining how resources are allocated between alternative uses but may still have a role as a rationing mechanism?
1 )
The government sets maximum prices for all goods above their market clearing price.
2 )
The government sets minimum wages for all workers below the market rates of pay.
The quantities of consumer goods produced are determined by the government.
4 )
The total income consumers have available to spend is fixed by the government.
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