This information on relative values is communicated, through price signals, to producers whose resources are also limited. In turn, relative prices for the productive services are established. The interchange of these two sets of prices establish market value, and serve to guide the rationing of resources, distributing income, and allocating resources.
The information about relative values is conveyed through price indicators to producers with limited resources. As a result, the prices for productive services are set. The interaction between these two types of prices creates market value and helps manage resource distribution, income allocation, and asset allocation.