Final answer:
An industry is defined by the production of goods or services within the economy, affected by the supply from producers and the demand from consumers, and prices serve as indicators for both sides to react and adjust.
Step-by-step explanation:
An industry is a sector of the economy that produces goods or services, and is influenced by supply and demand. The Law of Supply states that more of a product will be available for sale at higher prices and less at lower prices. Conversely, demand is the desire and willingness of consumers to purchase these goods or services. Prices in a market signify the crucial balance between demand and supply, influencing consumer behavior and producer profitability. In a market-oriented economy, these prices adjust based on the collective responses of consumers and producers, without central oversight.