Price plays a number of functions in the allocation of resources. Which statement best illustrates the function that relies upon consumer choice (sometimes known as the incentivising function)? A A price fall can show consumers that a good is becoming less popular. B A price fall tends to persuade some producers not to stay in the market for the good. CA price rise means consumers cannot afford to buy so much of a good. DA price rise tends to reduce competitiveness in the market for a good.
Price plays a number of functions in the allocation of resources. Which statement best illustrates the function that relies upon consumer choice (sometimes known as the incentivising function)? A A price fall can show consumers that a good is becoming less popular. B A price fall tends to persuade some producers not to stay in the market for the good. CA price rise means consumers cannot afford to buy so much of a good. DA price rise tends to reduce competitiveness in the market for a good.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![The answer is B, but isn't B talking about producer choice rather than consumer choice? Please provide step by step solution
to all options, thank you so much.
Price plays a number of functions in the allocation of resources.
Which statement best illustrates the function that relies upon consumer choice (sometimes known
as the incentivising function)?
A A price fall can show consumers that a good is becoming less popular.
B A price fall tends to persuade some producers not to stay in the market for the good.
CA price rise means consumers cannot afford to buy so much of a good.
D
A price rise tends to reduce competitiveness in the market for a good.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd4524f9-6be7-4a96-8a6a-efcb62d2dc1c%2F5827a9a9-be55-4392-9064-ac6bb883c766%2Fg9lw0is_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The answer is B, but isn't B talking about producer choice rather than consumer choice? Please provide step by step solution
to all options, thank you so much.
Price plays a number of functions in the allocation of resources.
Which statement best illustrates the function that relies upon consumer choice (sometimes known
as the incentivising function)?
A A price fall can show consumers that a good is becoming less popular.
B A price fall tends to persuade some producers not to stay in the market for the good.
CA price rise means consumers cannot afford to buy so much of a good.
D
A price rise tends to reduce competitiveness in the market for a good.
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