What guiding function of price in the long run?

In the long run, prices serve as a guiding mechanism for resource allocation in an economy. They signal to producers and consumers about the scarcity or abundance of goods and services, influencing production decisions and consumption patterns. Higher prices typically indicate increased demand or limited supply, prompting producers to allocate more resources to those goods, while lower prices can signal excess supply, encouraging reductions in production. This dynamic helps achieve a more efficient distribution of resources over time.