Prices will always regulate consumption adequately because of the different types of goods in the economy.

Question

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Prices do not always regulate consumption adequately because there are cases where people may continue to consume a good despite a high price (e.g. addiction), or may not consume a necessary good due to its high price (e.g. healthcare). Additionally, there are external factors such as income and availability that can affect consumption beyond prices.

Prices Will Always Regulate Consumption Adequately Because of the Different