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.
This information on relative values is communicated, via price cues, to producers whose resources are also constrained. Consequently, relative prices for productive services are determined. The exchange of these two sets of prices establishes market value and serves to direct the allocation of resources, distributing income and allocating assets.