The role that prices play in distributing scarce goods and services to those consumers who value them the most highly is known as the ________ function of price.
A)allocative
B)multiplicative
C)equilibrium
D)rationing

Question

Quizplus · Accepted Answer

The rationing function of price is to distribute scarce goods and services among potential consumers, ensuring that those who get them are the one who value them the most.

The Role That Prices Play in Distributing Scarce Goods and Services