In a market economy, prices:

Name: In a market economy, prices:
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Question

Quizplus · Accepted Answer

Prices serve multiple functions in a market economy. They inform consumers about the availability and quality of goods and services, motivate producers to produce more of what is demanded, and ration scarce resources by allocating them to those who are willing and able to pay the market price. Therefore, all of the above options are valid choices for the role of prices in a market economy.

In a Market Economy, Prices