A government wishes to influence the price of a good. It introduces a maximum price, ${P_{max}}$, and a minimum price, ${P_{min}}$.
The diagram shows these prices relative to the current market price P.
What can be concluded from the diagram?
1 )
Both the maximum and the minimum price will be effective.
Only the maximum price will be effective.
3 )
Only the minimum price will be effective.
4 )
The market price will continue to operate.
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