Answer to Question #94635 in Microeconomics for destiny

Question

Markets are very good at allocating scarce resources toward what?

Answer 1

Markets act as systems for allocating scarce resources with utilisation of the aspect of price. With every good and service in a market having value, it demonstrates the importance of rationing resources with the use of prices. Based on this, a market has the obligation to determine prices for goods and services through market force. Market undertake this obligation of allocating scarce resources with the aim of fulfilling infinite wants of consumers. Price in the market is used as a means of limiting access to goods and services.