What is an example of the rationing function of the price mechanism?
1 )
When the price of a product is falling, firms will allocate less resources to its production.
2 )
When the price of a product is falling, the government can set an effective minimum price.
3 )
When the price of a product is rising, firms will expand production of the product to make profits.
When the price of a product is rising, some consumers will no longer be able to buy it.
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