Question: 3. Price as a Rationing Tool A. How does price ration scarce goods in a market economy? (4 points) B. An increase in price provides

3. Price as a Rationing Tool

A. How does price ration scarce goods in a market economy? (4 points)

B. An increase in price provides information about the relative scarcity of a good. What does it say? (4 points)

C. An increase in price may be caused by either of two things. What are those two things? (4 points)

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