When the price of a good rises,the price is transmitting information indicating that the good has become relatively
A) scarcer.
B) less scarce.
C) more plentiful in supply.
D) b and c

Question

Quizplus · Accepted Answer

When the price of a good rises, it indicates that the good has become relatively scarcer in the market. This could be due to an increase in demand, a decrease in supply, or both.

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