Prices in a market economy perform a rationing function because they reflect
A) the demand of all buyers in the market.
B) the extent to which the goods are necessities.
C) the strength of the supply curve.
D) the relative scarcity of the goods.
D
Economics
You might also like to view...
Ranchers can raise either cattle or sheep on their land. Which of the following would cause the supply of sheep to increase?
A) an increase in the price of sheep B) a decrease in the price of cattle C) an increase in the price of sheep feed D) an increase in the demand for cattle
Economics
A decrease in the demand for the output that an input produces will cause the input's: a. supply curve to shift to the right. b. supply curve to shift to the left
c. demand curve to shift to the right. d. demand curve to shift to the left.
Economics