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How does the price system serve as a rationing mechanism?

Answer:
Since price of a good is determined where demand meets supply, it means that for the price, the optimum amount of goods are produced and consumed, making sure that everybody who has the demand for the good (willing able able to pay for it) can have that good.
First answer by Randhill. Last edit by Randhill. Contributor trust: 17 [recommend contributor recommended]. Question popularity: 1 [recommend question].

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