The price mechanism cannot ?
Correct answer: D. shift the demand curve
- A. Act as a signal
- B. Act as a incentive
- C. Act as a rationing device
- D. shift the demand curve
Explanation
The price mechanism signals scarcity, provides incentives, and rations goods through prices. It does not shift the demand curve, because demand shifts result from non-price factors such as income, tastes, or population.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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