What is the most likely reason for new producers to appear in the market?

Rising prices signal that the producers will make more profit.

Rising prices signal that more consumers are in the marketplace.

Falling prices signal that the producers' money will go further.

Falling prices signal that more consumers want more supply.

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Hassan Branch

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5 February, 10:47

What is the most likely reason for new producers to appear in the market?

Rising prices signal that the producers will make more profit.

Rising prices signal that more consumers are in the marketplace.

Falling prices signal that the producers' money will go further.

Falling prices signal that more consumers want more supply.

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Moshe Silva · Answer 1

Generally speaking, the most likely reason for new producers to appear in the market is " Rising prices signal that the producers will make more profit," since they are drawn heavily to profit margins.