What is one example of how the price mechanism performs its rationing function?
- AWhen the price of a product is falling, firms will allocate less resources to its production.
- BWhen the price of a product is falling, the government can set an effective minimum price.
- CWhen the price of a product is rising, firms will expand production of the product to make profits.
- DWhen the price of a product is rising, some consumers will no longer be able to buy it.