Question

The price system is an important component of the market because it _____.(1 point)
Responses

guarantees that consumers get the goods that they want
guarantees that consumers get the goods that they want

prevents spillover effects from occurring
prevents spillover effects from occurring

ensures that producers are able to profit
ensures that producers are able to profit

coordinates the activities of producers, consumers, and owners of resources

Answer 1

A recent diet trend has made snack cakes far less popular than they once were. As such, demand for snack cakes is expected to fall. As demand falls, _____.(1 point)
Responses

consumers face lower prices, and are encouraged to consume more
consumers face lower prices, and are encouraged to consume more

producers make higher profits, and more will enter the market
producers make higher profits, and more will enter the market

producers make lower profits, and some will exit the market
producers make lower profits, and some will exit the market

consumers face higher prices, and are encouraged to consume less

Answer 2

coordinates the activities of producers, consumers, and owners of resources

Answer 3

producers make lower profits, and some will exit the market