4.57 Price as Information
0%
Skill Level🔴 Hard
00:00
Progress to Next Level25% to Medium
EasyMediumHardMastery100%

Passage

A factory makes two products using the same machine time. When the price of Product X rises, the factory shifts production away from Product Y, and Y becomes harder to find and more expensive.

Which explanation best describes the information role of the rising price of X in this situation?