For most goods in an economy,the signal that guides the decisions of buyers and sellers is
A)greed.
B)consumer surplus.
C)prices.
D)profits.

Question

Quizplus · Accepted Answer

Prices are the signal that guides the decisions of buyers and sellers in most goods in an economy. Prices reflect the relative scarcity and demand for a good or service, and they provide information to both buyers and sellers about the best use of resources and opportunities for profit. While greed, consumer surplus, and profits may influence decisions to some extent, they are not as fundamental or pervasive as prices in guiding economic activity.

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