In markets, peopleʹs decisions are coordinated by
A) learning-by-doing.
B) adjustments in prices.
C) specialization according to absolute advantage.
D) changes in property rights.

Question

Quizplus · Accepted Answer

Prices act as signals in markets, coordinating people's decisions by adjusting according to supply and demand. As prices change, individuals and firms adjust their behavior to respond to the market signals, allowing for efficient allocation of resources.

In Markets, Peopleʹs Decisions Are Coordinated by