Question: 1. Prices perform a rationing function by A. Allocating goods to the buyers who are willing and able to pay the highest price. B. Eliminating

1. Prices perform a rationing function by

A. Allocating goods to the buyers who are willing and able to pay the highest price.

B. Eliminating scarcity in the market.

C. Making sure that buyers do not have to wait for goods.

D. allowing high-demand buyers to trade ration coupons.

2. There are simultaneous changes in the demand for and supply of global-positioning-system (GPS) devices, with the consequences being an unambiguous decrease in the market clearing price of these devices but no change in the equilibrium quantity. What changes in the demand for and supply of GPS devices could have generated these outcomes?

A. Demand increases and supply increases.

B. Demand increases and supply decreases.

C. Demand decreases and supply decreases.

D. Demand decreases and supply increases.

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