Economics 9708 · AS & A Level · Demand and supply curves

Demand and supply curves — practice question

What is one key role of the price mechanism?

  • Aproviding incentives for government intervention to reduce income inequality
  • Bremoving shortages by creating incentives for market prices to fall
  • Cremoving surpluses by creating incentives for market prices to rise
  • Dsignalling changes in market conditions to producers and consumers

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