Which of the following statements about markets and prices is correct?

Which of the following statements about markets and prices is correct? Multiple Choice a. In a market system, buyers and sellers must be in face-to-face contact with each other. b. Prices affect the distribution of goods in a market system, but not the allocation of resources. c. In a market system, prices serve to ration goods and services to consumers. d. The operation of a market system has little, if any, effect on the distribution of income in the economy.

Answer

ANSWER- Which of the following statements about markets and prices is correct? Answer – (c.) In a market system, prices serve to ration goods and services to consumers.

Explanation – In a maket demand responds to the price or in other words the quantity that the consumers are willing to buy is determined by price. Price rationing allocates the limited quantity of goods and services So, the statement,” In a market system, prices serve to ration goods and services to consumers.” is correct.

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