Asked by
Isabella Durazo
on Oct 13, 2024
Verified
The price system
A) sends signals to producers.
B) sends signals to consumers.
C) is based on supply and demand.
D) All of the choices are true about the price system.
Price System
The price system is the mechanism through which prices are determined for goods and services in an economy, facilitating the allocation of resources, signaling what to produce and consume, and coordinating economic activity.
Supply and Demand
Fundamental economic model that explains how the interaction between the quantity of a good or service available (supply) and the desire for it (demand) determines its price.
Consumers
Individuals or entities that purchase goods and services for personal use or consumption.
- Understand the fundamental concepts of supply, demand, and how the price mechanism plays a role in the distribution of resources and goods.
Verified Answer
HO
Learning Objectives
- Understand the fundamental concepts of supply, demand, and how the price mechanism plays a role in the distribution of resources and goods.