![]() ![]() Producers are more likely to produce more when prices are high and opposite when prices are high and less when prices are low ![]() Prices and fees are often high in low-income districts not because of greed but because it takes more resources and risk compared to higher income Shortage is a price phenomenon An Overview of Prices Scarcity is when there isn’t enough resources. When the price is artificially controlled, demand is high and producers can get away with lower quality items Rent controls provide incentives for people to build luxuriate apartments that are not affected, which increase the cost of living instead Meeting one need by shifting resources may cause the unmet of others Price Control Unmet needs: since there are limited resources, there will always be unmet needs. It's best to have a free market handle it Its nearly impossible for governments to keep track of the prices of all the resources. Also, can be a guide for producers to make things consumers want.It can be used not only for transactions but also provide incentives for people to utilize those resources.Price does not cause scarcity but a reflection of the scarcity Price largely determines the allocation of resources It is not money, but the volume of goods and services that determines the wealth of a countryĮconomic is the science of allocation with resources with alternative use The Role of Prices Scarce: when the sum of what everyone wants is greater than the total amount of resources Read My Review of Basic Economics Here What is Economy ![]()
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