It is true that the distribution process carried out by the price system
A)accomplishes the task more efficiently than central planners would.
B)favors the rich.
C)is superior to other rationing mechanisms because it is able to pay attention to individual consumer preferences.
D)All of these responses are true.

Question

Quizplus · Accepted Answer

The distribution process carried out by the price system accomplishes the task more efficiently than central planners would, as it is able to utilize the information about supply and demand from buyers and sellers to determine the market price. It is also superior to other rationing mechanisms because it is able to pay attention to individual consumer preferences. However, it is also true that the price system tends to favor the rich, as they have more purchasing power to bid up prices in competitive markets. Therefore, all of these responses are true.

It Is True That the Distribution Process Carried Out by the Price