In a market economy, prices inform, motivate, and ration.

Name: In a market economy, prices inform, motivate, and ration.
Brand: Quizplus
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Question

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Prices in a market economy serve three functions - they convey information about the availability and demand for goods and services, they motivate producers to increase or decrease production based on these signals, and they ration scarce resources by allocating them to those who are willing and able to pay the price.

In a Market Economy, Prices Inform, Motivate, and Ration