Falling prices send signals to consumers

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Business

Elaine Heath

22 April, 00:33

Falling prices send signals to consumers

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Fresier · Answer 1

Rising prices give a signal to consumers to reduce demand or withdraw from a market completely, and they give a signal to potential producers to enter a market. Conversely, falling prices give a positive message to consumers to enter a market while sending a negative signal to producers to leave a market.

Falling prices send signals to consumersTo

Falling prices send signals to consumers

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