For most goods in an economy,what is the signal that guides the decisions of buyers and sellers
A)greed
B)the self-interest of both buyers and sellers
C)prices
D)profits

Question

Quizplus · Accepted Answer

Prices are signals that guide the decisions of both buyers and sellers in an economy. Prices determine the demand for goods and services by consumers and the supply by producers. When prices are high, it signals higher demand, and producers increase their supply to maximize profits. On the other hand, when prices are low, it signals lower demand, and producers reduce their supply to avoid losses. Therefore, prices act as an essential signal that guides the decisions of buyers and sellers in an economy.

For Most Goods in an Economy,what Is the Signal That