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When We Say That Market Prices Allocate Goods to the Highest-Valued

Question 2

Multiple Choice

When we say that market prices allocate goods to the highest-valued users,we mean that


A) only consumers with higher incomes will get any of the good,while lower income consumers get none of the good.
B) only consumers who value the good more than the market price of the good will choose to buy the good.
C) government allocation of the good is warranted because government can make sure that the good gets consumed by deserving individuals.
D) there is no shortage.

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