Question

role of consumer in price determination

Answer 1

The price of goods plays a crucialrole in determining an efficient distribution of resources in a market system. Price acts as a signal for shortages and surpluses which help firms andconsumers respond to changing market conditions. If a good is in shortage – price will tend to rise

Answer 2

The price of goods plays a crucial role in determining an efficient distribution of resources in a market system. Price acts as a signal for shortages and surpluses which help firms and consumers respond to changing market conditions. If a good is in shortage – price will tend to rise.