In a market economy, buyers and sellers communicate their intentions to one another through:

Question

Quizplus · Accepted Answer

Prices serve as signals of the relative scarcity of goods and the demand for them in a market economy. Buyers and sellers respond to these signals by adjusting their behavior and decisions accordingly. This process is known as the price mechanism, which is the primary means of communication between buyers and sellers in a market economy.

In a Market Economy, Buyers and Sellers Communicate Their Intentions