When price functions as an incentive, it

Name: When price functions as an incentive, it
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When prices change, buyers and sellers may respond by adjusting the quantity they are willing to buy or sell. For example, if the price of a good increases, some buyers may decide to purchase less of it, while some sellers may decide to produce more of it to take advantage of the higher price. This illustrates how price serves as an incentive for economic actors to change their behavior.

When Price Functions as an Incentive, It