explain how price act as a signal to consumer and producer?
if price increases, producer will increase producing the goods.
HS
Related Economics IB answers
All answers ▸Why do firms in a perfect competition always make normal profit in the long run?
Explain the difference between marginal returns to factor and returns to scale?
How do you calculate the net social welfare loss due to a negative externality in production?
Explain three factors that could lead to an increase in demand for cigarettes.