For most goods in an economy,the signal that guides the decisions of buyers and sellers is
A) preference.
B) government intervention.
C) quantity.
D) price.

Question

Quizplus · Accepted Answer

Price serves as the signal that guides the decisions of buyers and sellers in most goods in an economy. It represents the value of a good or service and helps to allocate resources efficiently. As prices rise, it signals to producers to increase production, while consumers may choose to reduce their consumption. Conversely, as prices fall, producers may choose to cut back on production, while consumers may choose to increase their consumption. This process helps to balance supply and demand and ensure that resources are allocated efficiently.

For Most Goods in an Economy,the Signal That Guides the Decisions