Define price system in economics.
Understand the Problem
The question is asking for a definition of the price system in economics, which refers to the mechanism by which prices are established in a market economy. This involves the interactions of supply and demand that determine the prices of goods and services.
Answer
A price system allocates goods, services, and resources through valuation.
The price system in economics is a mechanism through which goods, services, and resources are allocated among producers and consumers through a process of valuation.
Answer for screen readers
The price system in economics is a mechanism through which goods, services, and resources are allocated among producers and consumers through a process of valuation.
More Information
The price system helps allocate scarce resources efficiently in an economy, guiding producers and consumers through price signals.
Sources
- Price system | Economics & Market Forces | Britannica Money - britannica.com
- Price System | Purpose, Types & Examples - Study.com - study.com
- In economics, a price system is a system that determines the valuation of property - en.wikipedia.org
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