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- Higher prices is a sign to producers that they need to produce more and a sign that buyers need to buy less.

- Low prices is a sign for producers to produce less and for the buyers to buy more.

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- It all depends on what the consumer is willing to pay for. If the producer is selling it for a higher price and conumsers are paying that proce, the producer will keep making more at that price.

- Price flexibility is really good because it allows the market economy allow change.

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- When resources are scarce, prices are going to rise

- Prices rise so that the higher the price. the more the resource is rationed.

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- Producers automatically produce more of what earns a profit and less of what is losing money.

- Price in a market-based economy is to guide resources to their most efficient uses.