The Role of Price What is price? Price is often said to be the amount of money people must have to get something (19) .That is to say, we take prices as a formal (20) indicating the quantities of money needed to acquire a given quantity of goods or services. When a loaf of bread is (21) as $0.50, it means the seller provides one loaf of bread and the buyer (22) $0.50. If a seller wishes to change prices, what can he do? There are several ways to do that. Suppose when there is a (23) of sugar cane, there will be an increase in the price of sugar. (24) the seller can change the price by increasing the quantity of money to be given by the buyer. This is the first way. The second way to change price is to change the quantity of goods and services. If the quantity of a product remains (25) , but the quality has been decreased, then the price has (26) increased. This is the third way. Price can also be changed by offering discounts, (27) goods or services. (28) this case, the actual price of goods is reduced. There are also some other ways to change prices. which either increase prices or reduce prices. Price (29) play a major role in a market economy. When demand for a product or service is greater than the supply, buyers (30) the price up. If costs remain unchanged, the higher price (31) greater profits and the producers are able to (32) in resources to produce even greater quantities of the product. On the other hand, if supply is greater than demand, there are (33) to decrease prices and reduce output. These pressures lead producers to put their resources into other uses. (19)