A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2018 · Q101 Mark
When will the price mechanism not function as a system for allocating goods?
Awhen the government bans advertising
Bwhen the government maintains an effective maximum price
Cwhen there is a limited supply of the good
Dwhen there is a powerful company able to set the market price
✓ Correct answer
B: when the government maintains an effective maximum price
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