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Market Prices Provide Information to Consumers, Helping Them Coordinate Their

Question 226

Multiple Choice

Market prices provide information to consumers, helping them coordinate their activities so long as


A) competition is present and buyers and sellers are free to choose mutually agreeable prices.
B) prices are not allowed to rise too high, causing a shortage.
C) prices are legally kept equal in all markets, preventing unfair price increases in markets with shortages and unfair price decreases when a market surplus is present.
D) the government carefully screens producers and effectively keeps inefficient producers out of the market.

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