Price signals in markets
A) allow uninterested buyers to participate.
B) eliminate incentives.
C) lead to irrational decision-making.
D) create incentives.
E) are the essence of economic socialism.

Question

Quizplus · Accepted Answer

Price signals in markets create incentives for both buyers and sellers to make rational decisions based on supply and demand. These signals help allocate resources efficiently and encourage competition, which can lead to better prices and quality for consumers.

Price Signals in Markets