How does the price of a good or service reflect the relative scarcity of it, and how does that
perform the allocative function in a market economy?

The price of a goods or service reflects the relative scarcity of it. Because when the price is high of a goods or service it means that the production of this goods or service is low.On the other hand when the price is low that means the production of this goods or service is more available.So the scarcity of goods related to the price.

Price of the goods directs the alloctaive function .Allocative function means the proper distribution of goods on the open market economy. When the price is high in a market that means the supply is low there. So according to market equilibrium more supply needed there.

Explanation:

elizabeth loftus conducted a study to observe the reliability of eyewitnesses during the 1970s. their baseline was to define how accurate are the recollections of eyewitnesses.

her studies do not support the use of eyewitness. loftus mentions in her work that we are not required to recall some experiences, meaning that rarely an individual eyewitness testimony is trustworthy. a good example is presented in her work, where all individuals watched a video and were than asked "about how fast were the cars going when they hit/smash? ". the testimonies changed based on the word she used to make the question (hit or smash), proving the fragility.