I n a price system, c hange s in p r i ces mak e it d i fficult for t h e eco no

ID: 1187768 • Letter: I

Question

In a price system, changes in prices

make it difficult for the economy to function well.

signal to policymakers what goods should and should not be taxed.

signal to consumers that some goods are relatively more or less scarce.

imply that people have made mistakes in the past.

make it difficult for the economy to function well.

signal to policymakers what goods should and should not be taxed.

signal to consumers that some goods are relatively more or less scarce.

imply that people have made mistakes in the past.

signal to consumers that some goods are relatively more or less scarce

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