Question

Constructing Arguments Write a blog post in which you argue whether or not the price system is the most effective way of allocating goods and services in an economy.​

Answer 1

price system is the most effective way to stabilize an economy for instance take the example of the price of soy in Brazil! the price is high due to a demand from China to feed their pig farms and as Brazil is the top producer of that cereal thus our prices are high since the demand is greater than the offer! however as our governments promote people to enter in this market by low interest loans many people are joining the soy community changing their cultures to soy! after a while the offer will equalize balance with the demand and the prices will go down! this mechanism is very effective world-wide to have a fair price competition and make possible to everyone to pay correctly for their demands!