JAMB - Economics (2012 - No. 14)
An important function of the price system is to
ensure that producers' profits remain high
guarantee full employment of resources
allocate resources to most productive uses
protect the economic interests of government
הֶסבֵּר
The distribution of scarce resources among competing producers is one of the main functions of price mechanism. Those industries which can offer the highest prices for the factors of production are able to attract supplies.