JAMB - Economics (2022 - No. 2)
The price mechanism
regulates supply and demand
rations the consumers
rewards the producers
allocates scarce resources
does all of the above
Explicació
Price mechanism simply has to do with how the profits made from the sale of goods and services affect the demand and supply of goods and supply.
In this system, the forces of demand and supply determine the prices of commodities and the changes therein.