This shift in production was accomplished in the marketplace through changes in the prices of goods and services being offered.
If the price of an item rises, for example, this stimulates business firms to produce and supply more of it to consumers.
In the long run, new firms may enter the market to produce those goods and services experiencing increased demand and rising prices.
A decline in price, on the other hand,usually leads to reduced production of a good or service, and in the long run some less efficient suppliers may leave the marketplace.