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VLD [36.1K]
3 years ago
6

What is the second function price serves in a market system?

Social Studies
2 answers:
max2010maxim [7]3 years ago
5 0

Answer:

The price in a competitive market serves two very important functions, rationing and allocating. The rationing function relates to the buyers of the good. Price is used to ration the limited quantity of a good among the various buyers who would like to purchase it.

larisa [96]3 years ago
5 0

Answer: well the function price, for signaling or allocating, will relate to the producers and the owners (Aka the resource owners)

the A price is good so the X signal will be what the market wants/desires and when they have more of the input, the X producers are given more incentive to hire people for more recourses to produce more X

Explanation: I hope this helped, plz mark brainest I’m trying to level up and have a good day :)

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