Question

in one or two sentences explain the role of prices in a market and include distribution, producers and consumers

Answer 1

Prices in a market directly relate to distribution, producers and consumers. If items are selling well and consumers are pursching them, then there will be more of the items produced and distributed. If the prices are not affordable by consumers, they likely aren't purchasing the items and therefor the production and distribution will be low. Prices in the market are extremely important to study the changes in supply and demand for consumers.

Answer 2

The price of goods represents a crucial role in managing an effective distribution of supplies in a market system. Price serves as a signal for deficits and surpluses which help firms and customers respond to changing market conditions.