a
Rations the consumers
b
Rewards the producers
c
Regulates supply and demand
d
Allocates scarce resources.
Explanation
Correct Option
cNo explanation available
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Discussions (6)
SucceyAsher
3 years ago
The right answer is D.
A (rations the consumers)
C (regulates supply and demand)
All falls under D (allocates scarce resources)
Resources are allocated through the price mechanism in a free market economy. The economic problem of scarce resources is solved through this mechanism. The price moves resources to where they are demanded or where there is a shortage, and removes resources from where there is a surplus.
klickinstitute
3 years ago
D is the correct answer... the essence of setting a price by the government is allocate scarce resources.
