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prices function as an incentive because they represent the potential for profit.

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To consumers, price signals the opportunity cost of a purchase.

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prices tell producers what consumers  want

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changing prices motivates producers, prices in the form, of wages and salaries motivate workers

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prices allow markets to adjust quickly

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when major events such as wars and natural disasters interfere with the production or movement of good, wrecking havoc on supply

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the firms whose products are in the greatest demand will buy the most to make products to meet the demand

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without really knowing why consumers like one set of features rather than another, producers automatically produce more of what earns a profit and ess of what is losing money.