In a free market economy, the rationing of scarce goods is done principally by

Inkprince

1 year ago

The answer is C. Price Mechanism

In a free market, the consumer and the producer are linked together by a network of prices.
Scarce goods are rationed principally by price through the price mechanism. Price rice when the demand exceeds supply making goods available lonely those willing to those willing unable to pay this system and shows that resources are allocated efficiently without direct consumer intervention.

While consumers influence demand, they do not directly control the rationing process-- the price does.

Heryinkehola

1 year ago

the answer is price mechanism

isobo

12 years ago

in this market, consumers are the decision makers.