Principles of Macroeconomics / Unit 2 MAC 0130 short lesson, about 20 seconds
Prices Carry Information
Captions available
The idea
A price gathers and transmits information about scarcity. Buyers and sellers respond to it correctly without needing to know why it moved.
In practice
A price rise tells every buyer to economise and every seller to produce more, with no announcement.
Where people slip
A control suppresses that message without changing what caused it, which is why economists describe it as killing the messenger.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
Unlocks
- Nothing yet depends on this.
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