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13 October, 00:06

In a free market, what is a signal to sellers what should be produced and how to produce?

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  1. 13 October, 00:42
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    The signal would be: prices.

    When the prices of a certain product is high, it would give signals to the seller to increase the production of that product.

    the prices also determine how much material and type of production technique that the sellers can afford to use.
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