When the price of a good rises,the price is transmitting information indicating that the good is relatively

Question

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When the price of a good rises, it indicates that the good is relatively scarcer. This is because the demand for the good has increased relative to its supply, leading to an increase in price. Conversely, if the price of a good decreases, it indicates that the good is relatively less scarce.

When the Price of a Good Rises,the Price Is Transmitting