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When a Market Price Allocates a Scarce Resource

Question 1

Multiple Choice

When a market price allocates a scarce resource,


A) everyone in the economy can use the resource.
B) only those who show interest can use the resource.
C) willingness-to-pay is not an issue.
D) ability to pay for the resource is less important than willingness-to-pay.
E) only those who are willing and able to pay get the resource.

Correct Answer:

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