Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

What is required in order to achieve the optimum allocation of resources through the price mechanism?

  • AProducers can maximise their collective interest.
  • BConsumers and producers must have perfect knowledge.
  • CThe government must be able to apply maximum and minimum prices.
  • DThe value of the price elasticity of supply must be greater than one.

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