Which of the following best describes the "guiding function" of price? In response to a surplus or shortage in two markets, price serves as a "guiding function" by decreasing in one market and increasing in the other market in the short run. The guiding function of price is the movement of resources into or out of markets in response to a change in the equilibrium price of a good or service. The guiding function of price occurs when the market price changes to eliminate the imbalance between supply and demand caused by a shortage or surplus at the original price. The guiding function usually occurs in the short run while the rationing function usually occurs in the long run.

Clara client has just been presented with a standard representation agreement by the law firm of yatz & berger. clara's first language is german. although she speaks and reads everyday english quite well, the legal terms in the contract confuse her. yatz & berger should question 90 options: have someone in the firm, if possible, or a translator from outside of the firm, explain the terms of the contract thoroughly until clara has a full and complete understanding of its terms. advise clara to take the contract home and study it before signing it. have a paralegal explain the most important clauses in the contract to clara in smaller, plain english words. advise clara to sign the contract and take her copy home for study.