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WAEC Economics 1993 Question 28

Question 28

Economic Systems

The price system is

  1. A.the market price of commodities
  2. B.a market where a single price rules
  3. C.a system of price allocation to the products of the same firm
  4. D.a system of resource allocation through supply and demand interactions
  5. E.a system which the market price is determined only through haggling.
Show the answer and explanation

Answer: D (a system of resource allocation through supply and demand interactions)

Explanation

The price system allocates resources through the free interplay of demand and supply.