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Question
___________ helps consumers to determine the level as well as the composition of consumption expenditure.
___________ helps consumers to determine the level as well as the composition of consumption expenditure.
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Solution
The correct option is B Price mechanism
In price mechanism, prices of commodities in the market are affected by the forces of demand and supply that generates open competition in the market which leads distribution of goods and services according to the purchasing power of an individual where the consumers have freedom of choice between how much they will spend on consumption of goods and services.
In price mechanism, prices of commodities in the market are affected by the forces of demand and supply that generates open competition in the market which leads distribution of goods and services according to the purchasing power of an individual where the consumers have freedom of choice between how much they will spend on consumption of goods and services.
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