Prices are the heart of the:
A) political process.
B) market process.
C) business cycle.
D) theory of markets.

Question

Quizplus · Accepted Answer

Prices are the heart of the market process as they signal the supply and demand of goods and services and how they should be allocated. This allocation process is a feature of free market economies where prices are determined by market forces rather than by the government. Prices provide information for entrepreneurs and consumers to make decisions about production and consumption, and they incentivize producers to increase or decrease supply based on demand.

Prices Are the Heart of The