Prices: Jaena, Eleana, Stephanie, Kourtney by Jaena Abordo https://padlet.com/4000531/nku9uw6baavt en-us 2019-04-04 14:23:21 UTC 2024-05-26 07:07:25 UTC hello@padlet.com Prices Create Incentives to Work and Produce: https://padlet.com/4000531/nku9uw6baavt/wish/348545919 Prices in a market-based economy act as an incentive, as they represent potential profit. As prices rise, markets are motivated to produce more. On the reverse side, falling prices are incentives for firms to cut down production. For workers, they are motivated by prices through wages and salaries.]]> 2019-04-04 14:32:05 UTC https://padlet.com/4000531/nku9uw6baavt/wish/348545919 Prices Convey Information to Consumers and Producers https://padlet.com/4000531/nku9uw6baavt/wish/348545927 The primary role of prices is to convey information. Consumers and producers use the information to help them make decisions. Ultimately, prices tell producers what consumers want.

For consumers: Price signals the opportunity cost of a purchase. When the opportunity costs of products are high, people handle their money more carefully.

Producers: Use prices to appeal to consumers in hopes of getting them to buy their products. ]]> 2019-04-04 14:32:06 UTC https://padlet.com/4000531/nku9uw6baavt/wish/348545927 Prices Allow Markets to Respond to Changing Conditions https://padlet.com/4000531/nku9uw6baavt/wish/348548056 Prices allow markets to adjust quickly when major events such as natural disasters interfere with production, creating a problem with supply. When these disasters happen, prices fluctuate a lot depending on what item was affected by that disaster. ]]> 2019-04-04 14:35:17 UTC https://padlet.com/4000531/nku9uw6baavt/wish/348548056 Prices Allocate Scarce Resources Efficiently https://padlet.com/4000531/nku9uw6baavt/wish/348548136 Prices guide resources to their most efficient uses.  
Example: dairy factories will buy the most milk in order to make the products meet the demand. Guided by prices that communicate what consumers want, dairy producers automatically allocate milk— a scarce resource used to make many different products like ice cream. ]]> 2019-04-04 14:35:23 UTC https://padlet.com/4000531/nku9uw6baavt/wish/348548136 Crash Course: Prices 4000531 https://padlet.com/4000531/nku9uw6baavt/wish/348552807 2019-04-04 14:43:09 UTC https://padlet.com/4000531/nku9uw6baavt/wish/348552807