Which of the following is a function performed by market prices?
A) Market prices communicate information to buyers and sellers.
B) Market prices coordinate the decisions of buyers and sellers.
C) Market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production.
D) All of the above are functions performed by market prices.

Question

Quizplus · Accepted Answer

Market prices serve multiple functions: they convey information about the value and scarcity of goods, help coordinate economic decisions by aligning supply and demand, and incentivize producers to allocate resources efficiently based on consumer preferences and production costs.

Which of the Following Is a Function Performed by Market