Prices in a Modern Mixed Economy by Natalia Pieloch https://padlet.com/401378/61gg30hvb6r4 en-us 2018-10-31 14:19:14 UTC 2026-02-28 21:18:14 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Balance.png Prices Convey Information to Consumers and Producers: 401378 https://padlet.com/401378/61gg30hvb6r4/wish/298995358 2018-10-31 14:26:22 UTC https://padlet.com/401378/61gg30hvb6r4/wish/298995358 Prices Create Incentives To Work and Produce 401378 https://padlet.com/401378/61gg30hvb6r4/wish/298996316 2018-10-31 14:27:54 UTC https://padlet.com/401378/61gg30hvb6r4/wish/298996316 Prices Allow Markets to Respond to Changing Conditions 401378 https://padlet.com/401378/61gg30hvb6r4/wish/298996911 2018-10-31 14:28:49 UTC https://padlet.com/401378/61gg30hvb6r4/wish/298996911 Prices Allocate Scarcity Resources Efficiently 401378 https://padlet.com/401378/61gg30hvb6r4/wish/298996972 2018-10-31 14:28:57 UTC https://padlet.com/401378/61gg30hvb6r4/wish/298996972 https://padlet.com/401378/61gg30hvb6r4/wish/298999213 Incentives Matters Principle: people respond to incentives
- Prices are like incentives because they represent potential for profit. When prices increase, it motivates new and old firms to produce more. When prices decrease, the incentives change and tells firms to cut the production or leave to find better opportunities elsewhere.]]> 2018-10-31 14:32:52 UTC https://padlet.com/401378/61gg30hvb6r4/wish/298999213 https://padlet.com/401378/61gg30hvb6r4/wish/299000462 - Conveying important information that consumers and producers can use to help them make the proper decisions. ]]> 2018-10-31 14:34:58 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299000462 https://padlet.com/401378/61gg30hvb6r4/wish/299000490 - Prices show companies and producers where to direct their resources.
- Prices guide producers to allocate for a certain product.]]> 2018-10-31 14:35:02 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299000490 401378 https://padlet.com/401378/61gg30hvb6r4/wish/299001736 - Prices allow markets to adjust quickly when major events happen
         - Ex:hurricane, war, drought]]> 2018-10-31 14:37:11 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299001736 401378 https://padlet.com/401378/61gg30hvb6r4/wish/299002845 Example of Gas Prices After Hurricane:
- the hurricanes caused gas prices to increase drastically, since supply was low but demand was high
- once the country was recovering, the prices then declined and went back to "normal"]]> 2018-10-31 14:39:11 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299002845 https://padlet.com/401378/61gg30hvb6r4/wish/299003442 Ex: Car manufacturers use prices to decide what models to produce and in what quantities]]> 2018-10-31 14:40:13 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299003442 https://padlet.com/401378/61gg30hvb6r4/wish/299005025 example: a firm the produces backpacks might offer a stylish  model at a lower price targeted for preteens that want a new backpack for school.]]> 2018-10-31 14:42:49 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299005025 https://padlet.com/401378/61gg30hvb6r4/wish/299005659 Example: Home Prices
 - when home prices increase, the production of houses increase
 - when home prices decrease, the  production of houses decrease]]> 2018-10-31 14:43:59 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299005659 401378 https://padlet.com/401378/61gg30hvb6r4/wish/299007082 2018-10-31 14:46:15 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299007082 https://padlet.com/401378/61gg30hvb6r4/wish/299008839 When prices increase, it motivates people to seek work and produce more products. 
When prices decrease, the prices are like disincentives that make people not want to work.]]> 2018-10-31 14:49:02 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299008839 401378 https://padlet.com/401378/61gg30hvb6r4/wish/299010095 2018-10-31 14:51:01 UTC https://padlet.com/401378/61gg30hvb6r4/wish/299010095