In a competitive market, the price of pears serves to
A) signal consumers to buy more pears when there is a shortage
B) signal producers to supply more pears when there is a surplus
C) signal consumers to buy fewer pears when there is a surplus
D) ration pears among competing consumers

Question

Quizplus · Accepted Answer

In a competitive market, prices serve as a rationing mechanism to allocate limited resources among competing consumers.

In a Competitive Market, the Price of Pears Serves to