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Answer: Rising prices give a signal to consumers to reduce demand or withdraw from a market completely, and they give a signal to potential producers to enter a market. Conversely, falling prices give a positive message to consumers to enter a market while sending a negative signal to producers to leave a market.
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Symbolic interactionism is a sociological theory that develops from practical considerations and alludes to people's particular utilization of dialect to make images and normal implications, for deduction and correspondence with others. In other words, it is a frame of reference to better understand how individuals interact with one another to create symbolic worlds, and in return, how these worlds shape individual behaviors. It is a framework that helps understand how society is preserved and created through repeated interactions between individuals. The interpretation process that occurs between interactions helps create and recreate meaning. It is the shared understanding and interpretations of meaning that affect the interaction between individuals. Individuals act on the premise of a shared understanding of meaning within their social context. Thus, interaction and behavior is framed through the shared meaning that objects and concepts have attached to them. From this view, people live in both natural and symbolic environments.
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