Economics (AS & A Level) · Oct / Nov 2025 · Paper 14 · Question 9
9708The interaction of demand and supply
What is a major function of the price mechanism?
- Aproviding incentives for government intervention to reduce income inequality
- Bremoving shortages by creating incentives for market prices to fall
- Cremoving surpluses by creating incentives for market prices to rise
- Dsignalling changes in market conditions to producers and consumers
As printed in the paper
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Correct answer: D. signalling changes in market conditions to producers and consumers
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