kayleejackson118
kayleejackson118 kayleejackson118
  • 17-05-2021
  • Social Studies
contestada

What are three functions of price in market economy

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reaganrussell08
reaganrussell08 reaganrussell08
  • 17-05-2021
First, prices determine what goods are to be produced and in what quantities; second, they determine how the goods are to be produced; and third, they determine who will get the goods.
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Ballen9105
Ballen9105 Ballen9105
  • 17-05-2021

Answer:

Signalling function. Prices perform a signalling function – i.e. they adjust to demonstrate where resources are required. ...

Incentive function. Through choices consumers send information to producers about their changing nature of needs and wants. ...

Rationing function.

Explanation:

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