Allowing prices to ration goods among consumers results in an:

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Allowing prices to ration goods among consumers results in an efficient distribution of goods because goods go to those who value them the most. As prices increase, consumers who value the goods less will drop out of the market, and those who value them more will continue to purchase them. This ensures that the goods go to those who are willing to pay the most for them and therefore value them the most, and it also provides an incentive for producers to increase supply to meet the demand. This is the basic principle of the market system, which is based on voluntary exchange and the price mechanism as a means of allocating resources efficiently.

Allowing Prices to Ration Goods Among Consumers Results in An