WAEC - Economics (2008 - No. 9)
A major function of the price mechanism is that it determines the
allocation of resources
amount of national savings
population of the country
number of goods to be taxed
Explanation
The price mechanism is a mechanism where price plays a key role in directing the activities of producers, consumers, resource suppliers. It aids in resource allocation, as both the buyer and seller can decide on what product to produce and what to buy.
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