https://padlet.com/20honilu/z4f9t4vbp2mk What does price tell us about life in a mixed economy? en-us 2019-04-04 12:40:20 UTC 2025-01-08 12:06:32 UTC hello@padlet.com 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348488255 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 12:55:29 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348488255 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348489148 In a market-based economy, prices function as an incentive because they represent potential for profit.]]> 2019-04-04 12:57:14 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348489148 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348489590 Prices convey information to producers as well. Prices tell producers what consumers want. Automobile manufacturers, for example, pay attention to which models and features sell at high prices and which need to be marked down in order to attract buyers.]]> 2019-04-04 12:58:13 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348489590 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348489963 Just as changing prices motivate producers, prices in the form of wages and salaries motivate workers. The opportunity to earn a higher “price” can inspire people to enter the workforce or seek higher-paying jobs. On the other hand, low wages can act as disincentives for people to seek work.]]> 2019-04-04 12:58:56 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348489963 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348491262 By throwing the gasoline market into disequilibrium, Hurricanes Katrina and Rita illustrated the key role that prices play in correcting both shortages and surpluses.Prices give markets the flexibility they need to reach equilibrium even under changing conditions.]]> 2019-04-04 13:01:22 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348491262 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348491429 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.]]> 2019-04-04 13:01:41 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348491429 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348493923 Perhaps the most important role of price in a market-based economy is to guide resources to their most efficient uses. Consider, for example, the market for dairy products, such as yogurt, ice cream, and cheese. 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 13:06:42 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348493923 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348494311 Or consider the earlier example of car manufacturers who use prices to decide which models to produce and in what quantities. These production decisions are, at bottom, decisions about how best to use limited resources.]]> 2019-04-04 13:07:24 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/348494311 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/349321442 2019-04-08 00:16:29 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/349321442 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/349321674 2019-04-08 00:18:20 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/349321674 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/349322177 2019-04-08 00:22:09 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/349322177 20honilu https://padlet.com/20honilu/z4f9t4vbp2mk/wish/349322733 2019-04-08 00:26:01 UTC https://padlet.com/20honilu/z4f9t4vbp2mk/wish/349322733