Question

An increase in the price of mutton provides information which:

• A. Tells consumers to buy more mutton
• B. Tells consumers to buy more chicken
• C. Tells producers to produce more mutton
• D. Provides no information

Answer 1

The correct option is C

Tells producers to produce more mutton

An increase in the price of mutton provides information which tells producers to produce more mutton to fetch high prices.