In a market economy,the main market signal to competitive suppliers is

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In a market economy, the main market signal to competitive suppliers is the price of the product. When the demand for a product increases, the price of the product rises, and suppliers increase production in response to the higher price, thereby increasing the supply of the product in the market. Conversely, when the demand for a product decreases, the price of the product falls, and suppliers decrease production in response to the lower price, thereby decreasing the supply of the product in the market. Supply and demand forces work together to determine equilibrium prices and quantities in a market economy. The other choices - A) the number of consumers, B) consumers' income, C) the rate of inflation, and E) the unemployment rate - may affect the demand for a product, but the price of the product is the main market signal to suppliers in a market economy.

In a Market Economy,the Main Market Signal to Competitive Suppliers