Y1 7) Price Mechanism - The 4 Functions (Signalling, Incentivising, Rationing & Allocating)

Y1 7) 4 Functions of the Price Mechanism (Signalling, Incentivising, Rationing & Allocating). Video covering the 4 crucial functions of the price mechanism. So important to understand how markets work in allocating scarce resources through signals, incentives, rationing functions

[Pod.Snipsz]

cant lie dal bro the plaid shirt is looking cold g real economics drip

[KevinKL]

Your Smile really contributes to my happy day

[dubs]

Looking back at these vids when u finish alevels is brazy man when ur doing a levels you think it’s life or death

[last-doniliche]

Sir I'm grateful for your services, I've now improved economically all because of you. ❤

[limmazay]

I wish you were my econ tr, you properly explain everything and make it so easy to understand. Thank you so much for these videos, they help so much!

[WhahaDndjd]

Eternally grateful for helping me pass my exams 4 days before the paper, thankyou so much🙏🏻🙏🏻

[pafcbaz]

he is actually the greatest of all time

[zachary.berney]

Seeing this on the morning of my micro test was simply bluss

[XDriftwave]

Can't lie I would be failing econ without you

[LouiseWalcott]

Thanks Mr Dal these videos are very helpful :)

[ayyanattari]

Bro ur actually leng, papa dal, daly poo 🎉🎉🎉🎉

[zareenwilhelm]

5:15 Is it imperative to drop output AND liquidate stocks?

[Tinotenda-Dube]

Hello Sir,
The way you separated between rationing and incentive functions of price in your diagram left me wondering. Are you trying to tell us that economists restricts the word rationing to consumption and incentive to production?

Here is the fundamental thinking about the operation of the price mechanism that Im pretty sure you will personally appreciate perfectly:

Price always ensure that there is equilibrium or efficient allocation of resources in all individual markets. That is, all the needs and wants are satisfied with scarce resources available. So, any disturbance of this equilibrium is communicated through price changes (i.e., signallying) which in turn generate incentives (consumption and production incentives) and those incentives ensure that resources are effectively rationed (i.e., by eliminating surpluses and shortages) among competing uses.

Best regards.

[alenarose]

if you;'re shifting left to do with demand, does that mean there's too little demand and prices fall? and too little supply if you're shifting supply left and prices rise?

[hao]

Can you please cover on Economics though topic as well.

[Booooscared]

Hi could we get a video on export subsidy??

[Tolberone]

So do prices rise when there is excess demand because firms want to maximise profits?

[itsss]

what exactly does ration means? is it similar to 'allocate'?