Price serves multiple roles in an economy: it allocates resources by signaling where they are most valued, regulates the economic system by balancing supply and demand, influences production decisions based on profitability, and should ideally be set considering social responsibility to ensure fairness and accessibility.

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Price

Question 8

Multiple Choice

Price:

A) is an allocator of resources.
B) is a basic regulator of the economic system.
C) determines what will be produced.
D) needs to be established in a socially responsible manner.
E) is accurately described by all of the above.

Correct Answer: