When price movements act as signals to profit-makers,and they cut back on goods with falling prices and increase the production of goods with rising prices,it is called

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This describes the consumer sovereignty mechanism, where market participants respond to price signals by adjusting their consumption and production decisions. It is a fundamental aspect of a market economy. A) neosocialism and C) old socialism do not involve price signals, and D) the radical price-control mechanism involves government intervention rather than market forces.

When Price Movements Act as Signals to Profit-Makers,and They Cut