Basic price functions.

The price has not even two, but five main functions, I will now list them:
1) The first function that we will consider will be the accounting function.
Accounting function – it shows how much the society costs any of its needs.
2) The second function is distribution.
Distribution function – is responsible for ensuring that the national income is redistributed between completely different industries and segments of the population.
3) The third function will be the stimulating function.
Stimulating function – this function will stimulate the manufacturer through the profit received from it. (if the profit is large, then why not produce?)
4) The fourth point we have is balancing supply and demand.
It assumes an equal price for a product or service.
5) And the final point will be the criterion for the rational location of production.
Due to this price function, capital is redistributed from one sphere of the economy to another, of course, where the profit is higher.