For economic efficiency, which of the following conditions should be met?
A)Scarcer goods should have lower prices.
B)More abundant goods should have lower prices.
C)More abundant goods should have higher prices.
D)All goods should have equal prices.

Question

Quizplus · Accepted Answer

The law of supply and demand dictates that when a good is more abundant, its price should be lower for economic efficiency. This allows for more consumers to be able to afford the good and for producers to continue to sell the good at a profit. Conversely, when a good is scarce, its price should be higher to deter excessive consumption and encourage the development of alternative goods or production methods. Therefore, option B is the correct answer.

For Economic Efficiency, Which of the Following Conditions Should Be