price signal

noun

In a market economy, the information conveyed to consumers and producers via the price which provides a signal to change the demanded or supplied quantity of a product or service.

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Meanings

nounprice signal (plural price signals)

plural price signals

  1. economicsIn a market economy, the information conveyed to consumers and producers via the price which provides a signal to change the demanded or supplied quantity of a product or service.

    Unlike ration books or speeches by Jimmy Carter, price signals don't tell anyone what to do; they change the incentives and we are all free to act, or not, depending on our own circumstances and preferences.

    2026 April 4, Tim Harford, “Lessons from your petrol pump”, in FT Weekend, London: The Financial Times Ltd., →ISSN, →OCLC, page 17
Cite this entry
APA

price signal. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/price%20signal

MLA

“price signal.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/price%20signal. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “price signal,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/price%20signal.

Source: price signal on Wiktionary, CC BY-SA 4.0.