A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2010 · Q121 Mark
What does not happen when price acts as a means to allocate resources?
APrice determines the supply of public goods.
BPrice operates in the markets for both goods and factors of production.
CPrice recognises consumers' ability to pay rather than consumers' needs.
DPrice signals to producers which goods are most profitable.
✓ Correct answer
A: Price determines the supply of public goods.
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