Question

Falling prices send signals to consumers to________

Answer 1

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.

Explanation: Hopefully this helps you with whatever you are doing. This is a long answer. Hopefully you will get extra credit for this answer