An increase in the price of beef provides information which:
A) Provides no information because prices in a market system are managed by planning boards.
B) Tell consumers to buy less pork.
C) Tell producers to produce more beef.
D) Tell consumers to buy more beef.

Question

Quizplus · Accepted Answer

An increase in the price of beef indicates that there is an increase in demand for beef or a decrease in supply. This provides important information to producers, who can then respond by producing more beef to meet the demand and potentially take advantage of the higher price.

An Increase in the Price of Beef Provides Information Which