match each scenario with the correct function of prices. housing prices increase in an area. developers…

match each scenario with the correct function of prices. housing prices increase in an area. developers enter to build apartments and single - family homes. a car company finds that consumers are willing to pay $30,000 for one model of car, but only $15,000 for another. a copper manufacturer finds that a smartphone company is willing to pay $4.00 per pound of copper, while a discount jeweler is only willing to pay $3.00 per pound. a war affects the global supply of wheat. local markets adjust, keeping local markets in equilibrium. prices convey information to consumers and producers; prices create incentives to work and produce; prices allow markets to respond to changing conditions; prices allocate scarce resources efficiently

match each scenario with the correct function of prices. housing prices increase in an area. developers enter to build apartments and single - family homes. a car company finds that consumers are willing to pay $30,000 for one model of car, but only $15,000 for another. a copper manufacturer finds that a smartphone company is willing to pay $4.00 per pound of copper, while a discount jeweler is only willing to pay $3.00 per pound. a war affects the global supply of wheat. local markets adjust, keeping local markets in equilibrium. prices convey information to consumers and producers; prices create incentives to work and produce; prices allow markets to respond to changing conditions; prices allocate scarce resources efficiently

Answer

Brief Explanations:

  1. When housing prices increase and developers enter, prices are allocating scarce resources (land and construction efforts) efficiently as they signal where investment is profitable.
  2. A car - company's price discovery shows how prices convey information to consumers and producers about different models' value.
  3. The copper - manufacturer and jeweler price differences illustrate prices conveying information about the value of copper to different producers.
  4. A war affecting wheat supply and prices keeping markets in equilibrium shows how prices allow markets to respond to changing conditions.

Answer:

  1. Housing prices increase in an area. Developers enter to build apartments and single - family homes: Prices Allocate Scarce Resources Efficiently
  2. A car company finds that consumers are willing to pay $30,000 for one model of car, but only $15,000 for another: Prices Convey Information to Consumers and Producers
  3. A copper manufacturer finds that a smartphone company is willing to pay $4.00 per pound of copper, while a discount jeweler is only willing to pay $3.00 per pound: Prices Convey Information to Consumers and Producers
  4. A war affects the global supply of wheat. Local prices adjust, keeping local markets in equilibrium: Prices Allow Markets to Respond to Changing Conditions