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How does price serve similar a signal to resource owners

How does price serve similar a signal to resource owners?
While consumers decide that a good or service is more appealing than before, demand increase. This creates a shortage at original equilibrium price, putting upward pressure onto price. The higher price rise the amount of profit firms can earn, and provides them along with an incentive to generate more. Therefore, resource prices are bid up to attract more resources to the firms. The ending result is a movement of resources in the industry.

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