Price plays a number of functions in the allocation of resources. Which statement best illustrates the function that relies upon consumer choice (sometimes known as the incentivising function)? A A price fall can show consumers that a good is becoming less popular. B A price fall tends to persuade some producers not to stay in the market for the good. CA price rise means consumers cannot afford to buy so much of a good. DA price rise tends to reduce competitiveness in the market for a good.

Price plays a number of functions in the allocation of resources. Which statement best illustrates the function that relies upon consumer choice (sometimes known as the incentivising function)? A A price fall can show consumers that a good is becoming less popular. B A price fall tends to persuade some producers not to stay in the market for the good. CA price rise means consumers cannot afford to buy so much of a good. DA price rise tends to reduce competitiveness in the market for a good.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter5: Consumer Choice: Individual And Market Demand

Section: Chapter Questions

Problem 3DQ

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