Higher prices can discourage use/consumption, which in turn may better allocate scarce resources.

Question

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Higher prices can make people think twice about using or consuming a certain product or service, ultimately leading to a more efficient allocation of scarce resources. This is because people are more likely to prioritize what they truly need when the cost of obtaining it is higher. Conversely, lower prices can lead to overuse or wasteful consumption, which can strain limited resources.

Higher Prices Can Discourage Use/consumption, Which in Turn May Better