When price helps Josh decide to purchase a Chevrolet Cavalier instead of a Mercedes because he also wants a Harley-Davidson motorcycle, price serves the function of
A)demander.
B)decision maker.
C)facilitator.
D)intermediation.
E)allocator.

Question

Quizplus · Accepted Answer

Price serves as an allocator by helping Josh allocate his limited resources to purchase both the Chevrolet Cavalier and the Harley-Davidson motorcycle, rather than spending all his resources on a more expensive Mercedes.

When Price Helps Josh Decide to Purchase a Chevrolet Cavalier