Question

Which of the following statements about markets and prices is correct?

a. In a market system, buyers and sellers must be in face-to-face contact with each other.

b. Prices affect the distribution of goods in a market system but not the allocation of resources.

c. In a market system, prices serve to ration goods and services to consumers.

d. The operation of a market system has little effect on the distribution of income in the economy if any.