An economic system in which prices are determined by market forces.
- Informed individual decisions on the market are possible because of the information transmitted by the price system, and individuals are guided to act efficiently by the forces of competition.
- The price system, along with the profit we allow producers to earn for responding effectively to prices, keeps our economic lives orderly in the face of those changes.
- Even so, said Mises, without a free price system, scarce resources can never be allocated efficiently.
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