Price Controls Without Relative Values Steps:

• Identify equilibrium price P0 where supply equals demand.
• Minimum price (floor) at P1 prevents price below P1; maximum price (ceiling) at P2 prevents price above P2.
• Effective price must lie between P1 and P2, assuming P1 < P2.
• Without knowing if P0 is between P1 and P2, or their order, outcome is indeterminate.

Why A is wrong:

• Price falling to P1 assumes P1 is a binding ceiling below P0, but question specifies P1 as minimum (floor).

Why the others are wrong:

• B: Assumes P0 between P1 and P2, but unconfirmed without values.
• C: Assumes P2 is a binding floor above P0, but it's specified as maximum (ceiling).
• D: Rationing occurs only with shortages from binding ceiling below P0, not guaranteed here.

Not enough information.

Final answer: Not enough information.