Question

Which statement best explains how profits create interdependence in the free enterprise system?(1 point) Responses States will increase taxes on businesses to discourage them from making a profit. States will increase taxes on businesses to discourage them from making a profit. Foreign countries charge tariffs, or a tax, on imported goods to protect domestic industries. Foreign countries charge tariffs, or a tax, on imported goods to protect domestic industries. Consumers compete with each other to make the most profit. Consumers compete with each other to make the most profit. Businesses will produce goods to meet consumer demands when they can make a profit

Answer 1

The statement that best explains how profits create interdependence in the free enterprise system is: **"Businesses will produce goods to meet consumer demands when they can make a profit."**

This statement highlights the relationship between businesses and consumers, where businesses respond to consumer needs and preferences in order to achieve profits, establishing a cycle of interdependence in the market.