- Price signals
- The information that the market generates to guide the distribution of resources
- Law of Demand
- When the price goes up, Demand goes down
- When the price goes down, Demand goes up
- Inversely proportional to price
- Law of Supply
- When the price goes up, the Supply goes up
- When the price goes down, the Supply goes down
- Directly proportional to price
- Four things usually happen in any market
- Supply can increase
- Supply can decrease
- Demand can increase
- Demand can decrease