Which of the Following Best Describes the "Guiding Function" of Price

question 20

Multiple Choice

Which of the following best describes the "guiding function" of price?

• A)In response to a surplus or shortage in two markets,price serves as a "guiding function" by decreasing in one market and increasing in the other market in the short run.
• B)The guiding function of price is the movement of resources into or out of markets in response to a change in the equilibrium price of a good or service.
• C)The guiding function of price occurs when the market price changes to eliminate the imbalance between supply and demand caused by a shortage or surplus at the original price.
• D)The guiding function usually occurs in the short run while the rationing function usually occurs in the long run.

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Definitions:

Descriptive Research Study

A study aimed at describing characteristics of a population or phenomenon, often through observation, surveys, or interviews, without influencing the subjects.

Classic Tenets

Fundamental principles or beliefs that are widely accepted and followed within a specific theory, system, or organization.

Clinical Algorithms

Step-by-step guidelines used in healthcare to make decisions about patient care based on best practices and evidence.

Evidence-Based Practice

A decision-making process that integrates the best available research evidence with clinical expertise and patient values and preferences.