I think that, from these few examples, you can see that dollar prices carry a lot of information about the market, which you cannot see otherwise. The market does not produce information about the production levels of (nor demand for) products. In an environment with a fixed supply of money, dollar prices tend to decline for products in which production improves and rise for products in which production declines.

Of course, in the "real world" dollar prices do not move a neatly as in this model. The supply and demand for other products will influence the dollar prices of the product of interest, but without changes in the quantity of money, production changes will influence dollar price changes in the directions described here.

One important group of economic actors (entrepreneurs) find this pricing information quite useful. When relative dollar prices rise entrepreneurs see opportunity for profit; when dollar prices fall they see that a market has sufficient supply.

Now, let's see what happens to these dollar price signals when the supply of money changes. We'll start with an increasing supply of money.

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Notice: Dollar prices of individual good, in this fixed money quantity scenario, move independently. This makes the odds of a general dollar price increase and decline (the popular definition of "inflation" and "deflation") very unlikely—without some other influence.