Which Statements Are TRUE

Multiple Choice

Which statements are TRUE?
I. The price system solves the information problem by telling us the highest-valued uses for a product.
II. The price system solves the incentive problem by giving consumers an incentive to seek out substitutes when the price of a product rises.
III. The price system solves the social-equity problem by making most products affordable to middle-class households.

A) I, II, and III
B) II and III only
C) I and II only
D) II only