What method of resource allocation depends on willingness-to-pay and ability-to-pay?
A)command
B)lottery
C)market price
D)first-come,first-served
E)force

Question

Quizplus · Accepted Answer

Market price is the method of resource allocation that depends on willingness-to-pay and ability-to-pay. In a market economy, resources are allocated based on the price that consumers are willing and able to pay for a good or service. The higher the willingness-to-pay and ability-to-pay, the more likely it is that resources will be allocated towards producing that particular good or service.

What Method of Resource Allocation Depends on Willingness-To-Pay and Ability-To-Pay