A-LevelEconomicsThe price system and the microeconomy9708/12 · Feb/Mar 2017 · Q121 Mark
For price to act as a rationing mechanism for a final product, the effect of a rising price must be to
Aattract new firms into the market.
Bgenerate additional profits for producers.
Creduce the quantity demanded by some individuals.
Dsignal the need for redeployment of labour.
✓ Correct answer
C: reduce the quantity demanded by some individuals.
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