Answered

Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Explore in-depth answers to your questions from a knowledgeable community of experts across different fields. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

2. Explain the four characteristics of the price system.
3. Why is the price system an efficient way to allocate resources?
4. How do prices serve as signals and incentives to producers to enter a
particular market? to leave a certain market?
5. How does the story of Dell Inc. demonstrate the effects of
competitive pricing? in book of economics 174-178 pg.
High-school

Sagot :

hayhay104322

Answer:

1-The four characteristics of the price system are that it is neutral, market driven, flexible, and efficient. It is neutral because prices do not favor the producer or the consumer because the they both make choices that determine the equilibrium price.

2-Why is the price system an efficient allocator of economic resources? Prices are neutral, which means they are equally fair to both consumers and producers. They are flexible which means they can adapt to changing economic conditions. Prices are familiar which means that everyone understands how they work.

3-how do prices serve as signals and incentives to producers to leave a particular market? it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.

4-demonstrates the effects of competitive pricing because it shows how the company strategically lured customers away from rival producers while still making the highest profit.

Explanation:

:)

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.