The ability of Market forces to synchronize selling and buying decision to eliminate potential surpluses and shortages is known as_________________?
Correct answer: C. Rationing function of the price
- A. Generalization
- B. Specification
- C. Rationing function of the price
- D. None
Explanation
The rationing function of price allocates limited goods among buyers and signals producers, helping bring quantity demanded and quantity supplied into balance. This reduces persistent surpluses and shortages.
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