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The rationing function of prices refers to the A. tendency of supply and demand to shift in opposite directions. B. fact that ration coupons are needed to alleviate wartime shortages of goods. C. capacity of a competitive market to equalize quantity demanded and quantity supplied. D. ability of the market system to generate an equitable distribution of income.

Respuesta :

Answer: Option (C)

Explanation:

The role that price of goods or commodity plays is crucial since it helps in determining efficient outcome and distribution of the resources in the market system. It tends to act as signal which points toward surpluses and shortages that also help organization and consumers so as to respond to the changing market situation.