In a free market economy, the price mechanism:
a. Aids government control
b. Allocates resources
c. Measures national wealth
the answer is, B. But I don't understand, will you please explain why?
Ask the Tutor ACCA BT
micro-economic
3y ago#1If a product is in high demand, prices will rise as buyers compete for units of the product. Higher prices will cause producers to make more units thereby allocating more resources to making what consumers want.
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