Which of the Following Is NOT a Function of Prices

question 115

Multiple Choice

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 make an equitable distribution of goods and services among consumers possible

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Definitions:

Bullwhip Effect

The phenomenon where small variations in demand at the retail level cause progressively larger fluctuations in demand up the supply chain.

Information Sharing

The exchange of data, facts, ideas, and insights between individuals or organizations, aimed at improving understanding, efficiency, and collaborative efforts.

Fluctuation

Describes variations or changes in a metric or condition over time, such as price, demand, or supply levels.

Manufacturer Orders

Requests or instructions sent to a factory or producer for the creation or supply of goods, indicating the quantity and specifications desired.