In the free market, the main signal to the market that pushes prices toward equilibrium comes from

Question

Quizplus · Accepted Answer

The main signal to the market that pushes prices toward equilibrium in a free market is whether there is a surplus or shortage of goods available for sale. If there is a surplus, prices will decrease to encourage consumers to buy more, and if there is a shortage, prices will increase to encourage producers to supply more. Government regulators, stock market analysts, and research economists may influence the market, but they are not the main signals that push prices toward equilibrium.

In the Free Market, the Main Signal to the Market