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To consumers price signals the opportunity cost of an object and to producers it signals what consumers want.

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Producers use prices to appeal to consumers they hope to buy a product.

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Prices function as an incentive because it represents potential for profits.

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Prices help motivate workers in the form of salaries and wages; just like prices help motivate producers.

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Prices help markets adjust quickly when natural disasters or major events have happened.

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After a major event/ natural disaster goods will begin to fluctuate, which can cause demand and supply to have to adjust so that they are in line with one another.

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Price has a very important role in the market-based economy and that is to guide resources to their most efficient uses.

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Firms that are in great demand of a certain product will purchase that product to meet the demand. These products have guided prices based on what consumers want.