explain how price act as a signal to consumer and producer?

if price increases, producer will increase producing the goods.

HS
Answered by HAZIQ SAFWAN B. Economics tutor

2097 Views

See similar Economics IB tutors

Related Economics IB answers

All answers ▸

How might an increase in average income levels affect the average price level?


How do automatic stabilizers work?


Is a firm earning abnormal profits in perfect competition productively and allocatively efficient?


Consider a competitive market, that has recently had an ad valorem sales tax imposed. Show this on a diagram. What is the impact on the market equilibrium? If the demand curve becomes more inelastic, which side of the market suffers more?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences