Question

Prices effectively act as signals to producers and consumers in all of the following instances EXCEPT:

A. IT IS NOT A

B.

helping people make quick decisions

C.

providing incentives to consumers and producers

D.

regulating the flow of goods in the economy

Answer 1

C because if prices were the same then no one would buy in certain places, however, lets say a shop has lower prices in a product than the shop neighboring it, more people would want to shop there. Hens forth prices are an incentive for consumers & producers.

Answer 2

C. providing incentives to consumers and producers

Step-by-step explanation:

It is generally called the price to the payment or reward assigned to obtain goods or services or, more generally, any merchandise.

Although such payment is not necessarily made in money, the prices are generally referred to or measured in monetary units. From a general point of view, and understanding money as a commodity, it can be considered that goods and services are obtained by barter, which, in modern economies, generally consists of exchange for, or mediated through money.

In the development of the economy there has been a prolonged debate about the relationship between price and value. Originally, the classical school considered that the price depended directly on the value, understood as the amount of work encapsulated in the production of a given commodity (see Theory of labor-value). Subsequently, from the work of the marginalists, it was conceived that the price depends on the utility that each individual assigns to the good or service in question. An opinion that is becoming increasingly influential, based on the work of Piero Sraffa, is that the price is determined in relation to a package of basic goods or merchandise or numerary (including labor) that are fundamental for the production of the goods. goods of all kinds. (See Production of goods by means of merchandise)

Given that the relationship between value (understood as the quantity of these basic goods used in production) and prices constitute the basis of profit, analyzing the relationship between value and price makes it possible to identify the price strategy that long The term can be successful for a company. (see Value added)

Over time, prices may rise (inflation) or decrease (deflation). These variations are determined by calculating the price index, there are several such as the so-called Consumer Price Index (CPI), the Industrial Price Index (IPI), etc.