An economic system in which prices are determined by market forces.
- ‘The price system, along with the profit we allow producers to earn for responding effectively to prices, keeps our economic lives orderly in the face of those changes.’
- ‘Even during war, Keynes believed, a market-based price system would allocate resources more efficiently than could a rationing and planning system.’
- ‘Informed individual decisions on the market are possible because of the information transmitted by the price system, and individuals are guided to act efficiently by the forces of competition.’
- ‘Even so, said Mises, without a free price system, scarce resources can never be allocated efficiently.’
- ‘From the days of Adam Smith, the core insight of modern economics has been that people will usually act in self-interest and that the price system, at least most of the time, is the best available index of what people want.’