https://padlet.com/20duttan/aurlfvp02nya By: Stasha Dutt en-us 2019-04-04 11:48:26 UTC 2019-04-05 19:46:00 UTC hello@padlet.com 20duttan https://padlet.com/20duttan/aurlfvp02nya/wish/348464737 - A primary role of price is to convey information. Both consumers and producers use this information to help make decisions.
- To consumers, price signals the opportunity cost of a purchase. The opportunity cost of buying any product, remember, is the next best use for the money you spend.
 ]]> 2019-04-04 12:00:39 UTC https://padlet.com/20duttan/aurlfvp02nya/wish/348464737 20duttan https://padlet.com/20duttan/aurlfvp02nya/wish/348465350 - In a market-based economy, prices function as an incentive because they represent potential for profit. 
- Rising prices in a market motivate existing firms to produce more, 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 12:02:31 UTC https://padlet.com/20duttan/aurlfvp02nya/wish/348465350 20duttan https://padlet.com/20duttan/aurlfvp02nya/wish/348465491 - Prices allow markets to adjust quickly when major events such as wars and natural disasters interfere with the production or movement of goods, wreaking havoc on supply. 
- This new, low equilibrium price reflected the fact that in addition to the increase in supply as U.S. facilities went back on line, refiners throughout the world had rushed fuel to the United States in the months after the hurricanes.]]> 2019-04-04 12:02:55 UTC https://padlet.com/20duttan/aurlfvp02nya/wish/348465491 20duttan https://padlet.com/20duttan/aurlfvp02nya/wish/348465602 - Perhaps the most important role of price in a market-based economy is to guide resources to their most efficient uses. 
-  The firms whose dairy products are in greatest demand will buy the most milk in order to make products to meet that demand.]]> 2019-04-04 12:03:17 UTC https://padlet.com/20duttan/aurlfvp02nya/wish/348465602