A.available B.means C.that D.intersections
E.comprise F.interrelationships G.exchanged H.freely
I.involved J.replaced K.valid L.payment
M.those N.randomly O.consist
Prices determine how resources are to be used. They are also the
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by which products and services that are in limited supply are rationed among buyers. The price system of the United States is a complex network composed of the prices of all the products bought and sold in the economy as well as
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of a myriad of services, including labor, professional, transportation, and public-utility services. The
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of all these prices make up the "system" of prices.
If one were to ask a group of
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selected individuals to define "price", many would reply that price is an amount of money paid by the buyer to the seller of a product or service or, in other words
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price is the money values of a product or service as agreed upon in a market transaction. This definition is, of course,
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as far as it goes. For a complete understanding of a price in any particular transaction, much more than the amount of money
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must be known. Both the buyer and the seller should be familiar with not only the money amount, but with the amount and quality of the product or service to be
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, the time and place at which the exchange will take place and
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will be made, the form of money to be used, the credit terms and discounts that apply to the transaction, guarantees on the product or service, delivery terms, retum privileges, and other factors. In another word, both buyer and seller should be fully aware of all the factors that
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the total "package" being exchanged for the asked-for amount of money in order that they may evaluate a given price.