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price system

Line breaks: price sys¦tem

Definition of price system in English:

noun

An economic system in which prices are determined by market forces.
Example sentences
  • 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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