Prices are incentives, prices are signals, and prices are predictions.

Name: Prices are incentives, prices are signals, and prices are predictions.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

Prices play different roles in the market. As incentives, they encourage or discourage consumers and producers to buy or sell certain products. As signals, they convey information about the demand and supply of goods and services. As predictions, they anticipate future demand and motivate producers to adjust their supply accordingly.

Prices Are Incentives, Prices Are Signals, and Prices Are Predictions