What is not a function of prices in a market economy?
prices allow income to be distributed equally
prices ration scarce resources among economic agents
prices rise and fall to reflect shortages and surpluses
prices send information to consumers and producers
The table shows the market schedule for good X.
If the quantity supplied increases by 50% at each price, what will the equilibrium price and quantity be?
price
quantity
10
100
9
200
8
300
7
400
The diagram shows the market for a product.
Which distance shows a market disequilibrium caused by excess supply?
U to V
to X
V to W
X to W