Why are prices important in a market economy?

The price of goods plays a crucial role in determining an efficient distribution of resources in a market system. Price acts as a signal for shortages and surpluses which help firms and consumers respond to changing market conditions. ... Falling price encourage people to buy, and cause firms to try and cut back on supply.

Explanation:

They let businesses find out what people want so they can supply it.

Explanation:

 b) Republicans had gained power in the Senate.

Context/detail:

The Republicans in the Senate feared the treaty could commit the US to future wars that were not directly related to US national security, because of the commitment the treaty made to the formation of a League of Nations. The United States never joined the League of Nations, in spite of the fact that an organization such as the League of Nations was the signature idea of US President Woodrow Wilson.  He had laid out 14 Points for establishing and maintaining world peace following the Great War (World War I).  Point #14 was the establishment of an international peacekeeping association. The Treaty of Versailles adopted that idea, but back home in the United States, there was not support for involving America in any association that could diminish US sovereignty over its own affairs or involve the US again in wars beyond those pertinent to the United States' own national security.   Because of its objections to membership in the League of Nations, the United States Senate refused to ratify the Treaty of Versailles.