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Kisachek [45]
2 years ago
5

What are three functions of price in market economy

Social Studies
2 answers:
Luba_88 [7]2 years ago
8 0

Answer:

Signalling function. Prices perform a signalling function – i.e. they adjust to demonstrate where resources are required. ...

Incentive function. Through choices consumers send information to producers about their changing nature of needs and wants. ...

Rationing function.

Explanation:

damaskus [11]2 years ago
3 0
In fact, this function of prices may be analyzed into three separate functions. First, prices determine what goods are to be produced and in what quantities; second, they determine how the goods are to be produced; and third, they determine who will get the goods.
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