Under socialism the most important means of achieving the necessary proportionality between demand and supply is the continuous expansion and improvement of production in conformity with the needs of the working people. In establishing and maintaining this proportionality, the correct use of the law of value and the price mechanism is also of great importance. In fixing the prices of consumer goods according to plan, the socialist state has the opportunity of affecting both the output or supply of commodities as well as the demand for them through the instrument of prices. This conscious utilization of the instrument of prices in the development of the socialist economy increases particularly during the period of full-scale communist construction.
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