Note: This is post #15 in a weekly video series on basic microeconomics.
The price system allows for people with dispersed knowledge and information to coordinate global economic activity. The global production of roses, for example, reveals how the price system is emergent, and not the product of human design.
(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)
Previous in series: What you should know about wage subsidies