Which of the following is not a function of prices in a market system?
A)Prices have the crucial job of balancing supply and demand.
B)Prices send signals to buyers and sellers to help them make rational economic decisions.
C)Prices coordinate economic activity.
D)Prices ensure an equal distribution of goods and services among consumers.

Question

Quizplus · Accepted Answer

Prices do not ensure an equal distribution of goods and services among consumers. In fact, prices can sometimes result in unequal distribution as those who can afford to pay higher prices will be able to purchase more goods and services. The other options (A, B, and C) are all functions of prices in a market system.

Which of the Following Is Not a Function of Prices