In order for the price system to work well, it must be based upon voluntary exchange between informed people.

Question

Quizplus · Accepted Answer

The price system relies on individuals freely exchanging goods and services through the marketplace. For this to work best, it is important that both parties are fully informed and make voluntary decisions to exchange. If one party is unaware of the true value of what they are exchanging, or is coerced into the exchange, the price system may not be working optimally.

In Order for the Price System to Work Well, It