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The price mechanism

The price mechanism
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Regulates supply and demand
  • B Rations the consumers
  • C Rewards the producers
  • D Allocates scarce resources
  • E Does all of the above
Correct Answer: Option A
Explanation:
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.

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