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Unformatted text preview: goods, to dispose of those items as they choose Property rights are what make the mutually beneficial transactions in any market possible Economics Signal Economic signal- any piece of information that helps people make better economic decisions Prices are the most important signals in a market economy because they convey essential information about other peoples costs and their willingness to pay The market price signals to consumers with a willingness to pay equal to or more than the market price that they should buy the good, just as it signals to producers with a cost equal to or less than the market price that they should sell the good Since in equilibrium, the quantity demanded equals the quantity supplied, all willing consumers will find willing sellers Sometimes a price is not an accurate indicator of how desirable a good is...
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- Fall '07