A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · May/June 2020 · Q111 Mark
What is a major function of the price mechanism?
Aproviding incentive 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
✓ Correct answer
D: signalling changes in market conditions to producers and consumers
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