a signal that makes coustermers buy more supplies from te companies
This is due to the principles of supply and demand. If a product is in high demand but low supply then sellers will raise the price and maximize profits. They also will pay a high price either because they want the product ( a discretionary decision ) or the need it.
The demand and supply of a particular stock decides the way its price is going to move. When there are more buyers to a stock than sellers - high demand then its price goes up. When there are more sellers than buyers - high supply then the price goes down. The reason as to why people would want to buy or sell a stock would depend on a variety of reasons like, the company's performance, latest news, global economic situation etc.
Quite simply, if the listed prices are too high compared to similar products from other sellers, then buyers will shop elsewhere. In short, if something is too expensive, it won't sell.
When consumers pay high prices, producers know that they are using their ___________ well.
By creating a balance between buyers who want low prices and sellers who want high prices -APEX -Just did test so trust me xd
Price mechanism is a term referring to how the change in the prices of commodities affects demand and supply. It is important because it regulates the price in the market, absence of price mechanism may lead to an increase in price once demand gets high.
They sold it to worthy buyers. They sold many for a high price.
in a market economy, a high price is a signal for?
rising profit, because in case of scarcity, the price signal induces producers to increase their capacity because rising price means rising profitability. :)
It's simple if you have a lot of buyers of one place they will compete and price will go up but if you don't have a buyer at all definiately price will be low like in some areas price are high and in some it's low just because amount of buyers.
If a product is in high demand, the chances are good that the seller of that product is going to increase the price. It is a basic principle of economics.
They will produce less of it because when the price raises, the buyers want less of it because the price is too high.