answersLogoWhite

0

allocative function of price: to direct resources away from overcrowded markets and towards markets that are underserved.

Rationing function of price: to distribute scare goods to those consumers who value them most highly

User Avatar

Wiki User

13y ago

Still curious? Ask our experts.

Chat with our AI personalities

JudyJudy
Simplicity is my specialty.
Chat with Judy
TaigaTaiga
Every great hero faces trials, and you—yes, YOU—are no exception!
Chat with Taiga
RafaRafa
There's no fun in playing it safe. Why not try something a little unhinged?
Chat with Rafa

Add your answer:

Earn +20 pts
Q: Distinguish between the rational function and the allocation function of price system?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Algebra