A major function of the price mechanism is that it determines the

  • A allocation of resources
  • B amount of national savings
  • C population of the country
  • D number of goods to be taxed
waec 2008economics

The correct answer is A. allocation of resources

The price mechanism is a mechanism where price plays a key role in directing the activities of producers, consumers, resource suppliers. It aids in resource allocation, as both the buyer and seller can decide on what product to produce and what to buy.

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