The price mechanism

  • A regulates supply and demand
  • B rations the consumers
  • C rewards the producers
  • D allocates scarce resources
  • E does all of the above
jamb 2022english-language

The correct answer is A. regulates supply and demand

Price mechanism simply has to do with how the profits made from the sale of goods and services affect the demand and supply of goods and supply. 

In this system, the forces of demand and supply determine the prices of commodities and the changes therein.

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