The price system takes into account consumer preferences in the distribution of goods and services.

Question

Quizplus · Accepted Answer

The price system is based on the principle of supply and demand, which means that prices are determined by the preferences of consumers and the availability of goods and services in the market. As demand for a item increases, the price goes up, and the opposite is true when demand decreases. Therefore, the price system takes consumer preferences into account in determining the distribution of goods and services.

The Price System Takes into Account Consumer Preferences in the Distribution