asked 92.0k views
13 votes
Price increases on goods in the economy signal producers to __________ production.

A.
stop
B.
increase
C.
decrease
D.
maintain

asked
User MikeW
by
8.4k points

2 Answers

9 votes

Answer:

C

Step-by-step explanation:

edge 2021

answered
User Msarchet
by
7.8k points
12 votes

Answer:

C. decrease

Step-by-step explanation:

Price increases on goods in the economy signal producers to decrease production.

Producers benefits more when the price of goods and services increases in the market. This makes them have more profit.

To maintain this profit level, they often decrease their production output to create a form of artificial scarcity within the market to sustain the price at which their goods trades.

  • If the producer increases the amount of goods they produce, this flux of goods can cause a decrease in price as the consumer is favored with a good bargaining power.
answered
User Amandanovaes
by
8.6k points

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