Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

At what point is the price mechanism least likely to move resources in response to a shift in consumer preferences?

  • Awhen the government removes all price controls
  • Bwhen the new preferences are for more public goods
  • Cwhen the supply of factors of production is limited
  • Dwhen there is a redistribution of income

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