In a market, the rationing function of prices results in
A)long queues or waiting lines.
B)a price ceiling.
C)equilibrium.
D)a shortage or surplus.

Question

Quizplus · Accepted Answer

The rationing function of prices ensures that demand matches supply, resulting in equilibrium. This means that prices do not create shortages or surpluses, nor do they cause long queues or waiting lines. Price ceilings, on the other hand, may lead to shortages if the price is set below the equilibrium price level. Therefore, the best choice is C.

In a Market, the Rationing Function of Prices Results in