The rationing mechanism in market economies is the adjustment of
A) supply.
B) demand.
C) quantity.
D) price.

Question

Quizplus · Accepted Answer

The rationing mechanism in market economies is primarily through the adjustment of price. When there is a shortage, prices tend to rise, rationing the available supply to those willing and able to pay more. Conversely, if there is a surplus, prices tend to fall, making the product available to more consumers. This price adjustment mechanism helps balance supply and demand.

The Rationing Mechanism in Market Economies Is the Adjustment of