Question

In a free market economy, what signal do high prices send?(1 point)
Responses

Producers should supply less and consumers should buy more.
Producers should supply less and consumers should buy more.

The government should intervene to protect consumers.
The government should intervene to protect consumers.

Producers should supply more and consumers should buy less.
Producers should supply more and consumers should buy less.

Producers should supply less and consumers should buy less.

Answer 1

In a free market economy, high prices signal that producers should supply more and consumers should buy less.

So the correct response is:

**Producers should supply more and consumers should buy less.**