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Explain How Price Can Be a Regulator, That Is, How

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Essay

Explain how price can be a regulator, that is, how it can coordinate the plans of buyers and sellers.


Definitions:

Source Credibility

The level of trustworthiness, reliability, and expertise attributed to a source of information by its audience.

Expertise

How much a source knows.

Trustworthiness

Whether a source will honestly tell you what he or she knows.

Halo Effect

The assumption that because people have one desirable trait (e.g., attractiveness), they also possess many other desirable traits (e.g., intelligence).

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