Prices (Jessica, Gail, Aaron) by Gail Matras https://padlet.com/4022881/6w5vqjvgexpm en-us 2019-04-04 14:27:16 UTC 2025-10-03 19:11:45 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Manbag.png Prices Allocate Scarce Resources Efficiently https://padlet.com/4022881/6w5vqjvgexpm/wish/348549033 The most important role of prie in a market-based economy is to guide resources to their most efficient uses. For example, companies that sell a multitude of dairy products such as ice cream, yogurt, and cheese require a lot of milk to be supplied. These companies will then have the highest demand for milk in order to be able to make the products while meeting that demand.]]> 2019-04-04 14:36:56 UTC https://padlet.com/4022881/6w5vqjvgexpm/wish/348549033 Prices Convey Information 4022881 https://padlet.com/4022881/6w5vqjvgexpm/wish/348549549 When prices are high on certain items, such as real estate, it conveys the message that the good is in short supply. If the item is cheaper, it signals that their is a large supply or it is of low quality. Prices also assist producers in knowing what the customers want. ]]> 2019-04-04 14:37:45 UTC https://padlet.com/4022881/6w5vqjvgexpm/wish/348549549 Prices Create Incentives to Work and Produce https://padlet.com/4022881/6w5vqjvgexpm/wish/348549673  In a market-based economy, prices function as an incentive because they represent potential for profitRising prices in a market motivate existing firms to produce more, and they encourage new firms to enter the market. Falling prices, in turn, serve as incentives for firms to cut back on production or even to leave a market to look for better opportunities elsewhere.]]> 2019-04-04 14:37:56 UTC https://padlet.com/4022881/6w5vqjvgexpm/wish/348549673 Markets Changing Condition 4022881 https://padlet.com/4022881/6w5vqjvgexpm/wish/348553712 When major events or natural disasters occur, prices allow markets to adjust quickly. For example, when Hurricane Katrina destroyed the US Gulf Coast, the price for oil sky rocketed due to the oil production being shut down.]]> 2019-04-04 14:44:52 UTC https://padlet.com/4022881/6w5vqjvgexpm/wish/348553712 4022881 https://padlet.com/4022881/6w5vqjvgexpm/wish/348557115 Prices of gas after Hurricane Irma]]> 2019-04-04 14:50:38 UTC https://padlet.com/4022881/6w5vqjvgexpm/wish/348557115 4022881 https://padlet.com/4022881/6w5vqjvgexpm/wish/348558657 2019-04-04 14:53:18 UTC https://padlet.com/4022881/6w5vqjvgexpm/wish/348558657