1.2.7 Price Mechanism 0.0 / 5 ? EconomicsMicroeconomicsASEdexcel Created by: 13clarkenCreated on: 20-04-19 10:49 54231 Across 1. Functions of the price ... include rationing, incentives and signalling (9) 5. Price mechanism function: Price will act as a ... mechanism as a higher price will ... to producers that they could make more profits but also ... and discourages consumers from demanding the product (10) Down 2. The price ... moves markets into equilibrium. Scarce resources are allocated, price signals are given to consumers, price changes as a result in equilibrium change and a higher price would provide incentives to firms to produce more (9) 3. Price mechanism function: If a product or service is scarce, a higher price will ... it. As demand rises for a popular product or as supply runs out, a shortage will bring a ... function into play (9) 4. Price mechanism function: A rising price provides a greater ... to produce (9)
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