Question

In market economy a high price is a signal fora. producers to supply more and consumers to buy less b. producers to supply less and consumers to buy more c. government to intervene to protect consumers d. producers to supply less and consumers to buy less

Answer 1

a. producers to supply more and consumers to buy less.

Step-by-step explanation:

• In the market economy, as an economic system is where the decision regarding the investment and the production and the distribution are tuned by the price signals and is characterized by the formation of the factor markets that play a major role in the allocation of the capital and the factors of production.

• This when high rose of the prices takes places then the producers are to supply more thereof product and the considers to buy less of there products and thus a decline in the consumption rates. And depends on the supply and demand of the products.