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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