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In Free Markets,the Price System Encourages Producers to Meet Consumers

Question 50

Multiple Choice

In free markets,the price system encourages producers to meet consumers' wants because


A) it signals to producers which goods are profitable.
B) producers have the public interest in mind.
C) it allows the government to direct firms to the best production technique.
D) it rewards consumers for the resources they bring to the marketplace.
E) consumers are generally willing to pay more than the actual price.

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