Sign In
Ask Question
Business
Guest
20 November, 11:39
In a market economy, a high price is a signal for
+5
Answers (
2
)
Burns
20 November, 13:44
0
In a market ecoomy, a high price is a signal for producers to supply more and consumers to buy less.
Think of a high price as saying to producers, "Go, go, go!" There is obvious demand for the product that has pushed the price high--so the more you can make and sell, the more you as a supplier will profit. At the same time, the high price is saying to consumers, "Whoa, whoa, whoa! Slow down!" High prices will tell consumers to hold off on purchasing something and assess whether they really need it or can afford it. Even if the product is needed, consumers may wait, in hopes that prices will come down before long, or buy less of the product than they would have if prices were lower.
Comment
Complaint
Link
Admiral
20 November, 15:04
0
Producers to supply more & consumers to buy less
Comment
Complaint
Link
Know the Answer?
Answer
Not Sure About the Answer?
Get an answer to your question ✅
“In a market economy, a high price is a signal for ...”
in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Eagle Corp. operates Magnetic Resonance Imaging (MRI) clinics throughout the Northeast. At the end of the current period, the company reports the following amounts: Assets = $43,500; Liabilities = $20,500; Dividends = $2,140; Revenues = $13,100;
Answers (1)
An accountant buys a supply of pencils to be used in calculating the taxes of other business firms. based on this information, pencils in this case would be considered what type of product?
Answers (1)
If a game is not sold out, the marginal costs to a team accommodating one more fan is (a) Almost infinite. (b) Half the average ticket price. (c) Essentially zero. (d) The inverse of marginal costs.
Answers (1)
What are three things you can do to avoid a record being misfiled or lost
Answers (1)
Which of the following is not a qualitative factor to be considered in a make-or-buy decision? Supplier's ability to meet production schedule. Possible lost jobs from buying outside. Incremental benefit from buying outside.
Answers (1)
New Questions in Business
Is it better for bondholders when the yield to maturity increases or decreases? Bondholders are better off when the yield to maturity:
Answers (1)
Which best describes why taxes and savings are considered leakage factors?
Answers (1)
Which two tools are used to measure humidity?
Answers (1)
What is a good way to find a business idea that'll put your talents and interests to the best use? A. Buy a local business that has been around a long time. B. Open a business with a high profit margin. C.
Answers (1)
The 3M Post-it® Flag Highlighter and Pen marketing programs were designed for what primary objective? (A) The initial introduction of two new 3M products. (B) specific promotion to be used for long-range strategies.
Answers (1)
Home
»
Business
» In a market economy, a high price is a signal for
Sign In
Sign Up
Forgot Password?