https://padlet.com/404374/nd16klpjptw8 en-us 2019-04-04 14:23:11 UTC 2025-06-01 08:11:55 UTC hello@padlet.com https://padlet.com/404374/nd16klpjptw8/wish/348545418 To consumers, price signals the opportunity cost of a purchase. They have to consider what else that money can be used for. Often times, when the opportunity cost is high, people tend to think carefully if the purchase is worth the money. 
To producers, price conveys what consumers want. Without monitoring prices, producers cannot know if the price is where the consumers want it to be. Producers can also use prices to higher the chance that consumers buy their products. Setting the price at the perfect amount is the best way to get demand at its highest. 

]]> 2019-04-04 14:31:13 UTC https://padlet.com/404374/nd16klpjptw8/wish/348545418 https://padlet.com/404374/nd16klpjptw8/wish/348547167 The different prices can allow the market to respond to major events such as wars and natural disasters. When there is natural disasters like the ones that happened back in 2005 gas prices soared because the supply for gas was lower so in order to produce more gas companies had to raise prices. This canhappen with anything because the prices are constantly changing for different companies and it allows them to adapt to different situations.]]> 2019-04-04 14:33:58 UTC https://padlet.com/404374/nd16klpjptw8/wish/348547167 https://padlet.com/404374/nd16klpjptw8/wish/348548566 2019-04-04 14:36:11 UTC https://padlet.com/404374/nd16klpjptw8/wish/348548566 404374 https://padlet.com/404374/nd16klpjptw8/wish/348549286 constant changes in prices can make people angry especially when they are too high ]]> 2019-04-04 14:37:21 UTC https://padlet.com/404374/nd16klpjptw8/wish/348549286 https://padlet.com/404374/nd16klpjptw8/wish/348551416 Companies change the prices of the product they supply based in the number of rescorces they have avalible to them. In the early car buisiness for example the suppliers had to change the prices of the car they sold based on what model they weremaking and how much of them they made. If chevy only made 100,000 silverado trucks it might be more expensive to buy one because they are harder to make based on how much of them are made to sell.]]> 2019-04-04 14:40:47 UTC https://padlet.com/404374/nd16klpjptw8/wish/348551416 https://padlet.com/404374/nd16klpjptw8/wish/348551933 2019-04-04 14:41:38 UTC https://padlet.com/404374/nd16klpjptw8/wish/348551933 https://padlet.com/404374/nd16klpjptw8/wish/348553617 Prices are an incentive because they represent potential profit. When prices increase, producers produce more, so that they can get more profit. Inversely, when prices decreases, producers produce less, so that they can cut back on their losses. Prices, as wages and salaries, motivate workers. The opportunity to earn a higher wage can make people look for higher-paying jobs. When their are low wages, people tend not to seek work.  ]]> 2019-04-04 14:44:41 UTC https://padlet.com/404374/nd16klpjptw8/wish/348553617 https://padlet.com/404374/nd16klpjptw8/wish/348556385 2019-04-04 14:49:23 UTC https://padlet.com/404374/nd16klpjptw8/wish/348556385