Prices can act as a signal for consumers when they rise, this signals that they should buy more goods.
true or false

Prices send signals and provide incentives to buyers and sellers. When supply or demand changes, market prices adjust, affecting incentives. Higher prices for a good or service provide incentives for buyers to purchase less of that good or service and for producers to make or sell more of it.

Explanation:

A price signal is information conveyed to consumers and producers, via the price charged for a product or service, which provides a signal to increase or decrease quantity supplied or quantity demanded.

answer; i believe the correct answer is (federalist);