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If Price Is a Signal in a Market Economy, What

Question 1

Multiple Choice

If price is a signal in a market economy, what signal does it send to producers when the price of oil goes up?


A) suppliers should produce more gasoline.
B) buyers should purchase even more gasoline.
C) government should decrease taxes on gasoline.
D) government should place price controls on the market for gasoline.
E) suppliers should produce less gasoline.

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