In a market system, which of the following is incorrect? A. Prices allocate resources equally among competing industries and sectors in the economy. B. Prices indicate relative scarcities and costs of production. C. Relative price changes are a determinant of firms’ profits and therefore encourage or discourage production. D. Prices are measures of consumers’ willingness to pay for goods and services. E. Prices signal to consumers how much they must sacrifice to obtain a commodity.

In a market system, which of the following is incorrect?
A. Prices allocate resources equally among competing industries and sectors in the economy.
B. Prices indicate relative scarcities and costs of production.
C. Relative price changes are a determinant of firms’ profits and therefore encourage or
discourage production.
D. Prices are measures of consumers’ willingness to pay for goods and services.
E. Prices signal to consumers how much they must sacrifice to obtain a commodity.