In which set of circumstances will prices not be able to perform their function as an allocative mechanism, but may still have a role as a rationing device?
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 all goods available to consumers are in fixed supply.
4 )
The total income consumers have available to spend is fixed.
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