In Free Markets,the Price System Encourages Producers to Meet Consumers

question 39

Multiple Choice

In free markets,the price system encourages producers to meet consumers' wants because

• A) it signals to producers which goods are profitable.
• B) producers have the public interest in mind.
• C) it allows the government to direct firms to the best production technique.
• D) it rewards consumers for the resources they bring to the marketplace.
• E) consumers are generally willing to pay more than the actual price.

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