When price helps Josh decide to purchase a Mini Cooper Coupe instead of a Mercedes CLS-Class Coupe because he also wants a Harley-Davidson motorcycle, price serves the function of
A) demander.
B) decision maker.
C) facilitator.
D) intermediation.
E) allocator.

Question

Quizplus · Accepted Answer

Price serves as an allocator by determining how limited resources are distributed among various possible uses. In this scenario, price helps Josh allocate his budget between different desires, leading him to choose the Mini Cooper Coupe over the Mercedes CLS-Class Coupe to also afford a Harley-Davidson motorcycle.

When Price Helps Josh Decide to Purchase a Mini Cooper