A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2022 · Q91 Mark
When will the price mechanism be least likely to reallocate resources to meet a change 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
✓ Correct answer
B: when the new preferences are for more public goods
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