Goods in different markets may, in fact, differ greatly

What is a price and what are the main kinds of international prices?

Price is what must be given in exchange for something. Prices are usually expressed in terms of

A quantity of money per unit of a commodity (a good or service), but in barter the price of a good

Is what other good or goods it can be exchanged for. Price changes are the means by which the

Competitive process determines the allocation of resources in the free market economy.

When giving reasons for selecting international prices, one should consider the mechanism of

the basic conditions (1) of the price (pricing) system:

(1) Price system is the mechanism which sends prices up when demand is in excess and prices

Down when supply is in excess. The mechanism referred to is not some coordinated control from a

Central authority, but relies on the disparate decisions made by independent agents; it is the mechanism

Which makes a butcher reduce the price of a leg of lamb he is unable to sell, or an ice-cream

Salesman raise the price of price

In each market until some disturbance in costs or demand occurs. The importance of the price system

Is (a) that it serves as a means of rationing limited supplies among consumers, and (b) that it signals to